MULTIPLE DECREMENT MORTALITY TABLE USING THE ANNUAL EXPOSURE METHOD (STUDY CASE: CLAIM DATA OF LIFE INSURANCE COMPANY)

• Main Author: Syifa Fuady Ranawijaya, Salsabila
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/65377
• Institution: Institut Teknologi Bandung

A life insurance company is a company that provides services in risk management and payments to policyholders (the insured) or other entitled parties if the insured dies or remains alive. Life insurance companies need to review the suitability or feasibility of the mortality rate in the form of a mortality table which is used as one of the assumptions when determining the right price for an insurance product and determining reserve valuation. In life insurance companies, customers still withdrawal, so a multiple-decrement mortality table is formed. The primary purpose of writing this final project is to construct a multiple decrement mortality table for life insurance company ‘’ using the exposure method, assuming constant force of decrement for both causes based on experience data from life insurance company ‘’. From this final project, it is obtained that the probability of death, survival, and resigning multiple decrements and those associated with each age with the assumption of a constant force of decrement, and the average life expectancy of a person aged x years (????????(????),????????(????),????????(????),????????(????),?????????(????),?????????(????),?????????(????),????????? (????),????????) which is then presented in tabular form. Referring to the death claim data and the resignation of the life insurance company ‘’, the overall probability of death for TMI in 2011 is higher than that of the life insurance company ‘’ especially at the age of 81 to 110 years have a significant difference.