THE PREMIUM AND NET PREMIUM RESERVE FOR MARRIED COUPLE WITH WEIBULL MORTALITY RATES AND MONEY EXCHANGE RATE

• Main Author: Estherlita, Rosella
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/55002
• Institution: Institut Teknologi Bandung

Life insurance is an agreement that occurs between the insurance company and the policyholder to minimize the risk of an event that occurs suddenly. One example of life insurance is joint life insurance for married couples. Joint life insurance is considering the death of one partner so it can be formulated as ????((????1,????2))=????????????{????(????1),????(????2)} with (????(????1),????(????2)) is the random variable of couple’s remaining lifetime (????1,????2). In this study, the mortality rate of married couple (????1,????2) is considered to follow the Weibull distribution which has unique parameters of scale (k) and shape (n). Both parameters were estimated using least squares method. The estimated parameters ????? for male and female respectively are 4,0498×10?8 and 3.8331×10?8 and the parameter ????? for male and female respectively are 3,306 and 3,229. That parameters show the mortality rate in Indonesia follows a curve that will increases when age is increases too. The exchange rate is also observed in this study to determine discount factor. Discount factor give a result 0.959???? from the effect of the exchange rate during 2018-2021 period. The estimated parameters of Weibull mortality rate and discount factors are used to determine the premium for married couples. Data in this study is health insurance data for male and female employees at agency AAA in 2020. Based on data, the total participants who submitted claims were 664 people consisting of 271 male and 393 female. The mean of age of male and female who filed claims were 40 years old and 33 years old, respectively. These ages are used to calculate the probability life and failure of married couple. This study calculates premium and net premium reserves using three different conditions. The condition when married couple survive in 10 years give the premium 0,08350 with a benefit of 1 unit. This premium is among the premiums in other condition. In addition, this condition can provide the greatest net premium reserve during that period.