Pricing of premiums for equity-linked life insurance based on joint mortality models

Indonesian Operations Research Association - International Conference on Operations Research 2017

Riaman^1 ; Parmikanti, K.^1 ; Irianingsih, I.^1 ; Supian, S.^1

Departemen Matematika, FMIPA Unpad, Bandung

45363, Indonesia^1

关键词: Birth rates;    Calculation results;    Financial products;    Indonesians;    Life insurance;    Medical technologies;    Mortality model;    Premium prices;   

Others  :  https://iopscience.iop.org/article/10.1088/1757-899X/332/1/012040/pdf
DOI  :  10.1088/1757-899X/332/1/012040

来源: IOP

【 摘 要 】

Life insurance equity - linked is a financial product that not only offers protection, but also investment. The calculation of equity-linked life insurance premiums generally uses mortality tables. Because of advances in medical technology and reduced birth rates, it appears that the use of mortality tables is less relevant in the calculation of premiums. To overcome this problem, we use a combination mortality model which in this study is determined based on Indonesian Mortality table 2011 to determine the chances of death and survival. In this research, we use the Combined Mortality Model of the Weibull, Inverse-Weibull, and Gompertz Mortality Model. After determining the Combined Mortality Model, simulators calculate the value of the claim to be given and the premium price numerically. By calculating equity-linked life insurance premiums well, it is expected that no party will be disadvantaged due to the inaccuracy of the calculation result.