Morbidity Rate
Categories: Insurance
In finance, morbidity rates take a statistical look at diseases, and how they spread in a population. The higher the morbidity rate, the more it affects the population.
Actuaries (who typically work for health insurance or life insurance companies) use morbidity rates to determine the monthly premiums to charge their customers. The more likely you are to get a disease, the more it’ll cost ya (morbid, we know). It’s just another one of those ways actuaries do creepy calculations on the probability of death, and the likelihood of different potential causes of death.