Definition
Morbidity Table
A morbidity table shows the probability of falling ill, being injured or becoming disabled at each age, used to price health and disability insurance.
While mortality tables track death rates, morbidity tables track the incidence and duration of sickness, hospitalisation and disability, forming the statistical basis for health insurance and critical-illness pricing. Reliable morbidity data is harder to compile than mortality data.
Indian health insurers rely on emerging claims experience and limited industry morbidity studies, which is one reason health premiums are revised as claims data matures. Better morbidity data supports fairer pricing and product innovation in health, disability and long-term care cover.
Related terms
- Critical Illness CoverCritical illness cover pays a lump sum on first diagnosis of a listed serious illness such as cancer, heart attack or stroke, regardless of treatment cost.
- ActuaryAn actuary is a professional who applies mathematics, statistics and financial theory to price insurance, value liabilities and assess long-term risk.
- Mortality TableA mortality table shows the probability of death at each age, used by actuaries to price life insurance and value liabilities.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.