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The Insurance Times

people are sports persons playing hockey in a local club. This also will be a homogeneous
group of 50 persons but both first group and second group as mentioned above are not
homogeneous because they belong to different classes.

A group may cover both healthy and sick persons but since the cover is offered in a
group a single rate is charged.

Group covers are quite cheaper than individual health insurance since more persons are
covered in a single policy.

The insurance company before quoting the premium for group insurance analyses the
characteristics of group based on the underwriting guidelines.

Following parameters must be looked into for underwriting group insurance
policies:-
 Type of group
 Group size
 Type of industry
 Eligible lives for coverage
 Whether entire group is being covered or part members
 Level of coverage
 Composition of group in terms of sex, age, single or multiple location, income level

and whether members are required to participate in premium payment
 Difference in health care costs across regions in case of multisite locations
 Past claim experiences

9 4 Guide for Health Insurance