#TITLE_ALTERNATIVE#

• Main Author: ARYA (NIM: 10113035), EMMANUEL
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/21944
• Institution: Institut Teknologi Bandung

In the field of life insurance and pension, calculating reserves is a necessity to <br /> <br /> <br /> anticipate unexpected insurance policy claims in the future. Calculating insurance <br /> <br /> <br /> reserves consider the risk of the policyholder’s death (which is modeled in the <br /> <br /> <br /> disability model) and the risk of the policy expiry (which is modeled in the <br /> <br /> <br /> behavioral model). The combination of those models will form a new model called <br /> <br /> <br /> the ’combination model’. Modeling those mathematical models can be done by <br /> <br /> <br /> using the Markov chain approach. The advantage of using this approach is the <br /> <br /> <br /> Markov chain’s ability to consider more than one state for each model. By using <br /> <br /> <br /> Markov chain model, the calculation of insurance reserves is expected to be more <br /> <br /> <br /> accurate. Some cases regarding the policy and disability status will be in sight, so <br /> <br /> <br /> the impact to reserves calculation can be observed.