Monitoring Actuarial Present Values of Term Life Insurance By a Statistical Process Control Chart

3rd International Conference on Science & Engineering in Mathematics, Chemistry and Physics 2015

数学;化学;物理学

Omar, M. Hafidz^1

Statistics and Actuarial Science, Dept of Mathematics and Statistics, King Fahd University of Petroleum and Minerals, Dhahran

31261, Saudi Arabia^1

关键词: Insurance policies;    Life insurance;    Monitoring process;    Present value;    Recursion formulas;    Tracking performance;   

Others  :  https://iopscience.iop.org/article/10.1088/1742-6596/622/1/012020/pdf
DOI  :  10.1088/1742-6596/622/1/012020

来源: IOP

【 摘 要 】

Tracking performance of life insurance or similar insurance policy using standard statistical process control chart is complex because of many factors. In this work, we present the difficulty in doing so. However, with some modifications of the SPC charting framework, the difficulty can be manageable to the actuaries. So, we propose monitoring a simpler but natural actuarial quantity that is typically found in recursion formulas of reserves, profit testing, as well as present values. We shared some simulation results for the monitoring process. Additionally, some advantages of doing so is discussed.