The purpose of this article is to provide a technical discussion of capital loading that quot;micro health insurance unitsquot; (MIUs) must add to the premium to maintain financial sustainability. MIUs offer benefit packages and require prepayment, that is, they create a rudimentary...

Rationale: The use of reinsurance has been proposed as an alternative to traditional forms of capital for micro health insurance entities. However, there is almost no literature on the ramifications of this substitution, notably the fit of different types of reinsurance and comparisons of the...

We consider market players with tail-risk-seeking behaviour as exemplified by the S-shaped utility introduced by Kahneman and Tversky. We argue that risk measures such as value at risk (VaR) and expected shortfall (ES) are ineffective in constraining such players. We show that, in many standard...