DETERMINATION OF PURE PREMIUM USING GENERALIZED LINEAR MODEL (GLM) CASE STUDY: INPATIENT HEALTH INSURANCE

In this final project (skripsi), the pure premium for inpatient health insurance of an insurance company, is determined. The determination of the pure premium is dependent on claim size (severity) and claim numbers (claim frequency). The severity and frequency of claims are modeled using Generalized...

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Main Author: MARYAM (NIM : 10109105); Pembimbing : Dumaria. R. Tampubolon. Ph.D, ISA
Format: Final Project
Language:Indonesia
Online Access:https://digilib.itb.ac.id/gdl/view/16113
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Institution: Institut Teknologi Bandung
Language: Indonesia
id id-itb.:16113
spelling id-itb.:161132017-09-27T11:42:58ZDETERMINATION OF PURE PREMIUM USING GENERALIZED LINEAR MODEL (GLM) CASE STUDY: INPATIENT HEALTH INSURANCE MARYAM (NIM : 10109105); Pembimbing : Dumaria. R. Tampubolon. Ph.D, ISA Indonesia Final Project INSTITUT TEKNOLOGI BANDUNG https://digilib.itb.ac.id/gdl/view/16113 In this final project (skripsi), the pure premium for inpatient health insurance of an insurance company, is determined. The determination of the pure premium is dependent on claim size (severity) and claim numbers (claim frequency). The severity and frequency of claims are modeled using Generalized Linear Model (GLM) with log link function. Using the obtained models, the pure premium is determined using a compound model. The data used as a case study is inpatient health insurance data for underwriting year 2012 of an insurance company. Using the Kolmogorov-Smirnov test, for a significance level of (alpha) 5% the response variable, claims paid by the insurance company, does not follow any distributions belonging to the exponential family distributions. For the purpose of the objectives of the research, the claims severity are assumed to follow Inverse Gaussian and Gamma distributions. It is found that, at (alpha) 5% significance level, claims severity is determined by “length of stay”, “ICD codes” and “types of classes/services at the hospital”. For the claims frequency, at (alpha) 5%, significance level, the chi-square test showed that the claims frequency follows a negative binomial distribution. The model shows that the claims frequency is determined by “age” and “marital status” of the patient. text
institution Institut Teknologi Bandung
building Institut Teknologi Bandung Library
continent Asia
country Indonesia
Indonesia
content_provider Institut Teknologi Bandung
collection Digital ITB
language Indonesia
description In this final project (skripsi), the pure premium for inpatient health insurance of an insurance company, is determined. The determination of the pure premium is dependent on claim size (severity) and claim numbers (claim frequency). The severity and frequency of claims are modeled using Generalized Linear Model (GLM) with log link function. Using the obtained models, the pure premium is determined using a compound model. The data used as a case study is inpatient health insurance data for underwriting year 2012 of an insurance company. Using the Kolmogorov-Smirnov test, for a significance level of (alpha) 5% the response variable, claims paid by the insurance company, does not follow any distributions belonging to the exponential family distributions. For the purpose of the objectives of the research, the claims severity are assumed to follow Inverse Gaussian and Gamma distributions. It is found that, at (alpha) 5% significance level, claims severity is determined by “length of stay”, “ICD codes” and “types of classes/services at the hospital”. For the claims frequency, at (alpha) 5%, significance level, the chi-square test showed that the claims frequency follows a negative binomial distribution. The model shows that the claims frequency is determined by “age” and “marital status” of the patient.
format Final Project
author MARYAM (NIM : 10109105); Pembimbing : Dumaria. R. Tampubolon. Ph.D, ISA
spellingShingle MARYAM (NIM : 10109105); Pembimbing : Dumaria. R. Tampubolon. Ph.D, ISA
DETERMINATION OF PURE PREMIUM USING GENERALIZED LINEAR MODEL (GLM) CASE STUDY: INPATIENT HEALTH INSURANCE
author_facet MARYAM (NIM : 10109105); Pembimbing : Dumaria. R. Tampubolon. Ph.D, ISA
author_sort MARYAM (NIM : 10109105); Pembimbing : Dumaria. R. Tampubolon. Ph.D, ISA
title DETERMINATION OF PURE PREMIUM USING GENERALIZED LINEAR MODEL (GLM) CASE STUDY: INPATIENT HEALTH INSURANCE
title_short DETERMINATION OF PURE PREMIUM USING GENERALIZED LINEAR MODEL (GLM) CASE STUDY: INPATIENT HEALTH INSURANCE
title_full DETERMINATION OF PURE PREMIUM USING GENERALIZED LINEAR MODEL (GLM) CASE STUDY: INPATIENT HEALTH INSURANCE
title_fullStr DETERMINATION OF PURE PREMIUM USING GENERALIZED LINEAR MODEL (GLM) CASE STUDY: INPATIENT HEALTH INSURANCE
title_full_unstemmed DETERMINATION OF PURE PREMIUM USING GENERALIZED LINEAR MODEL (GLM) CASE STUDY: INPATIENT HEALTH INSURANCE
title_sort determination of pure premium using generalized linear model (glm) case study: inpatient health insurance
url https://digilib.itb.ac.id/gdl/view/16113
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