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Insurer economics: a health insurer in the UAE
The prompt
A fictional health insurer in the UAE covers 100,000 members with an average premium of AED 4,000 a year. Claims (the medical bills it pays) average AED 3,400 per member, and administration costs AED 440 per member. What are its medical loss ratio (MLR), its margin per member and its profit per member per month (PMPM)?
Your interviewer will share data as you ask for it. Ask clarifying questions, state a hypothesis, then lay out your structure out loud before you calculate.
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