A Simulation of policy taking medical insurance

Abstract

Medical insurance in Uganda lacks a computer simulation model that can aid awareness of public policy taking. The study developed a simulation model to aid in generating sufficient knowledge towards raising medical insurance awareness and to identify variables that underwriters consider for medical insurance policies so as to have a healthy population and a thriving medical insurance industry. Various methods were employed to fulfill the objectives set forth which included; investigation of computer simulation advances, variables identification, examination of interactions among the variables, simulation model building as well as simulation experiments. The simulation model developed in this study was used to identify and examine interactions among variables that underwriters consider for medical insurance policies. Once a firm adopts the model, decision makers then evaluate its effectiveness in achieving desired objectives. Findings show that if public awareness is simulated with an improved economic status, then more medical policies will be acquired. This will in turn increase on the insurance pool from which compensation or indemnity may accrue. The results have significant implications for the decisions of insurance managers and their capacity for long term planning. The study described in this report models the medical policy taking capacity requirements planning and management from a feedback perspective. It is recommended therefore that, the socio-economic status of the populace has to be enhanced for an increased policy taking ratio.