Information asymmetry in medical insurance: an empirical study of one life insurance company in Taiwan

Abstract

ABSTRACT Based on the data from one anonymous but renowned life insurance company in Taiwan, this paper focuses on a big data analysis using R programming language while adhering to the requisite conditions for the validity of using regression model to test the existence of the issue of information asymmetry in medical insurance. The log-linear regression model is adopted to fit with the data set and it is shown: There is a significantly non-linear positive relationship between the compensations and the insurance coverage, indicating that the issue of information asymmetry does exist among those claimants under discussion; the older those claimants were insured, the more they claimed; women claimed more medical compensation than men; those paying premiums quarterly claimed the highest.