SIMULATION OF ADEQUACY OF TABARRU FUNDS IN A UNIT LINKED TO SHARIA INSURANCE COMPANY FOR PARTICIPANTS AGED 0-32 YEARS

• Main Author: Eka Pratiwi, Yuyun
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/65048
• Institution: Institut Teknologi Bandung

Islamic insurance products have developed gradually in the last few decades. Some studies estimate this growth will reach 15 – 20%. Sharia insurance products must have tabarru funds, namely funds collected to help each other without any reward (voluntarily). Theoretically, these funds are accumulated to pay the insured's claims. Islamic insurance companies also offer unit-linked sharia insurance, previously introduced by conventional insurance companies. This study discusses fund management operations, predicting returns using the Vasicek and CIR models, mathematical models of unit-linked sharia insurance products, and the adequacy of tabarru funds in paying the insured's claims. The historical data used starts from 2009 to 2017, with the age of the participants starting from 0 to 32 years. The mathematical model is obtained by performing calculation simulations on several case examples. The parameter estimates from the Vasicek and CIR models search using Maximum Likelihood Estimation (MLE). The simulation of the adequacy of tabarru funds is calculated based on the participant's contribution according to historical data and the calculation of the contribution that refers to the 2019 Mortality Table. The results show several ujrah (costs) taken from the contributions paid: acquisition fees, administration fees, and risk management fees. Ujrah investment management and ujrah transfer of investment funds. In general, the mathematical model for unit-linked sharia insurance has the same composition, only different for each ujrah in each company. Meanwhile, the yield prediction using the CIR model is much better than the Vasicek model. Furthermore, the simulation of tabarru funds with the assumption of a minimum contribution of Rp. 2.4 million will be sufficient to pay participants' claims compared if this assumption is not used.