EVALUATION OF FUNDING RESERVESFOR THE EDUCATION SECTORAFTER THE EARTHQUAKE IN INDONESIAUSING CATASTROPHE EARTHQUAKE MODELWITH CHAIN-LADDER AND TIME SERIES ANALYSIS
Earthquake is a natural event that causes vibrations on the Earth's surface. This phenomenon is a natural disaster that results in significant losses and is difficult to predict. Due to its unpredictable nature and the substantial losses it causes, special handling is required. Handling is used...
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/79658 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Earthquake is a natural event that causes vibrations on the Earth's surface. This phenomenon is a natural disaster that results in significant losses and is difficult to predict. Due to its unpredictable nature and the substantial losses it causes, special handling is required. Handling is used to minimize and prepare for losses due to earthquakes. The losses resulting from earthquakes are diverse, one of which is building damage. One particular concern is school buildings, ranking second in terms of losses caused by earthquakes after homes or residences. The approach to addressing building damage includes constructing earthquake-resistant buildings, and financially, it requires the establishment of a reserve fund. Reserving funds for earthquakes involves estimating claims, which is a case requiring the identification of truth and the reporting period of losses in that event. In the insurance sector, losses due to earthquakes fall under long-term insurance. Long-term insurance is an insurance product with several periods before the losses incurred result in claims. Periods occurring in long-term claims include those that have occurred but have not been reported (IBNR) or have been reported but have not been validated. Therefore, in cases like this, losses are classified as a liability for the insurance company. To calculate the value of long-term insurance liabilities, there are several methods, and the method used in this final project is the chain-ladder model. Then, to calculate the reserve value for earthquake-related losses in the following year, time series time series time series time series time series analysis method is used. Thus, from these two methods, the required reserve value is obtained.
Keywords: Earthquake |
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