Methodology for Calculating the Job Loss Insurance Rate

Abstract

The relevance of the research topic is confirmed by the fact that in the context of globalization, job search and job loss have become rather common. Therefore, the working-age population needs to be protected from job loss when looking for a new job. The purpose of the article is to develop a methodology for calculating the job loss insurance rate for citizens. The methodology is based on an actuarial approach that allows a comparison of the net rate and the gross rate paid by the insured. The scientific novelty of the study lies in the consideration of the net rate based on the reasons for employee termination, and the analysis of the possibilities of distributing the net rate between the employee and the employer. Main research methods include tabular and graphical methods, analysis and synthesis, comparison, induction, and deduction. As a result of the introduction of job loss insurance, the social protection of the population in the context of COVID‑19 is being strengthened, and opportunities for temporary coverage of expenses during the job search period are being increased. The author concludes that this type of insurance is promising in a market economy and may become not only a new and interesting insurance product but also an effective tool for the social protection of the population in regions with high labor market turbulence.