What Does Morbidity Rate Mean?
The morbidity rate is a statistical figure that shows how many members of a population are infected by a disease and how often it occurs in a defined area at a particular period. Insurers use this figure to determine premium rates for health and life insurance.
Insuranceopedia Explains Morbidity Rate
The morbidity rate is expressed as a percentage. It is calculated by placing the number of people who were affected by the disease as numerator and those who were at risk as denominator. For example, if 10,000 of men 30 years and older were diagnosed with prostrate cancer out of a population of 20,000 (excluding men below 30 and females), the morbidity rate is 50%.
Insurers refer to morbidity rates when calculating premium prices for insurance, particularly for health and life policies.