NON-CHAIN STORE FIRE REINSURANCE PREMIUM ON PROVINCIAL GROUPS IN INDONESIA BASED ON CLUSTER ANALYSIS

• Main Author: Jacintha Howidjaja, Jasmine
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/55191
• Institution: Institut Teknologi Bandung

Non-chain stores, commonly referred to as independent stores, are small outlets or shops established in at least one location and a maximum of three locations by one person, partnered or run by the whole family with a minimum number of employees are usually not franchised. From an insurance point of view, non-chain stores fall into the category of medium-risk industry. Even from L&G Insurance Broker data, non-chain stores have a high risk of fire. In overcoming the impact of fire, insurance is needed as protection from these losses. So that insurance companies do not go bankrupt, insurance companies and reinsurance companies work together to cover the risk of loss. The distribution is proportionally and non-proportionately. This study using reinsurance data of company Y in 2016. From the analysis of the data, it is known that West Kalimantan Province has the largest number of claims in Indonesia, which may be due to the location of the province located at latitude 0 degrees which means the sun continues to shine above the equator, so it feels hotter than other areas in Indonesia. Furthermore, the province is dominated by tropical forests that can cause fire propagation. Next, we will discuss the process of determining the optimal value of proportional reinsurance premiums in 22 provinces in Indonesia using cluster analysis. The results of cluster analysis obtained high and low provincial categories based on total amount of claims and many policyholders make insurance claims. Then the distribution that best fits the p-value above 0.05 is determined, namely the Poisson distribution for many policyholders make insurance claims, while the Lognormal distribution for total amount of claim. In calculating the premium, the Expected Value Principal method will be used to calculate the premium range of Rp. 188,458,000.00 - Rp. 430,323,931.00.