CONTINUOUS TIME FOUR-STATE MARKOV CHAIN MODEL FOR VEHICLE INSURANCE
With the increase in number of privately owned vehicles and the increase of insurance products popularity, vehicle insurance has become one of general insurance products with the highest demand in Indonesia. To stay competitive in this situation, an insurance company needs to ensure the premium va...
Saved in:
| Main Author: | |
|---|---|
| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/56871 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | With the increase in number of privately owned vehicles and the increase of insurance products popularity, vehicle insurance has become one of general insurance products with the highest demand in Indonesia. To stay competitive in this situation, an insurance company needs to ensure the premium value charged to policy owners is also competitive. The condition of a vehicle changes over time, this unpredictability becomes an important consideration in calculating the premium for a vehicle insurance policy. One tool which can be used to develop a model for this unpredictability is Markov Chain.
In this study, continuous time Markov Chain will be used to develop a model to represent the condition of a vehicle into four states. One application from this study is calculation of the minimum premium value charged to the customers to keep the insurance company competitive. Microsoft Excel is the most widely used software in insurance industry, calculation processes in this study will be solved with the help of Microsoft Excel.
|
|---|