BENEFIT PRESENT VALUE CALCULATION FOR LIFE INSURANCE USING MARKOV CHAIN (CASE STUDY: DEATH CAUSED BY COVID-19 IN A HOSPITAL IN BEKASI REGENCY DATA)
In 2020, the world was hit by the Covid-19 pandemic, which is spreading very fast. As the result of the Covid-19, there is a risk which is impactful to economy. This risk can be overcame by transfering the risk to the insurance company, in the form of life insurance. In calculating the present value...
Saved in:
| Main Author: | |
|---|---|
| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/65392 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | In 2020, the world was hit by the Covid-19 pandemic, which is spreading very fast. As the result of the Covid-19, there is a risk which is impactful to economy. This risk can be overcame by transfering the risk to the insurance company, in the form of life insurance. In calculating the present value of life insurance benefits, Markov chain method can be used in modeling the state of the policyholders utilizing a multi-state model. In the multi-state model in the Covid-19 case, there are 3 states used in modeling. State 1 state the policyholders is negative for Covid-19. State 2 states that the policyholders is positive for Covid-19. Circumstance 3 states that the policyholder has dead. In this study, the rate of change is state was calculated by utilizing data from a hospital in Bekasi Regency which was modeled on the Gompertz model. The Least Square Method was used to perform linear regression on the data obtained from the Indonesian IV Mortality Table and a hospital against the Gompertz model. From this research, a table of present value of benefits based on age for life insurance is generated, which is expected can be used by life insurance companies in life insurance product based on the age of the policyholder. |
|---|