INSURANCE PRODUCT RUIN EVENT ANALYSIS WITHEXTERNAL FUNDS AT DISCRETE TIME
In actuarial science, there is a concept known as the theory of ruin. This concept is used to ensure the continuity of operational insurance companies. In the nineties, several large insurance companies in the United States, the United Kingdom, and Japan experienced bankruptcy due to deficiencies...
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/76358 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | In actuarial science, there is a concept known as the theory of ruin. This concept is
used to ensure the continuity of operational insurance companies. In the nineties,
several large insurance companies in the United States, the United Kingdom, and
Japan experienced bankruptcy due to deficiencies in researching the resilience of
insurance companies. In the current economic situation, insurance companies must
strive to achieve success in their business. Insurance companies can compete by
leveraging advanced technology, providing the best quality products, and effectively
managing human resources through internal and external funds. In this study, calculations
are performed using the approach of ruin theory and implementing a strategy
that involves external funds. These calculations use a recursive method. The
recursive method used in this study involves four variables: surplus, external funds,
ruin time, and time elapsed after updated claims, which change as time variables in
the recursive process. This research concludes that external funds reduce the risk
of bankruptcy, and an increase in the maximum debt limit also decreases the risk of
bankruptcy. |
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