Abstract
The level of accuracy to calculate the premium is one of the main points for an actuary to determine the criteria of product which is offered by an insurance company to customers. The main reference in this accuracy is the mortality table. The last mortality table made by AAJI (Asosiasi Asuransi Jiwa Indonesia) was Mortality Table Indonesia (MTI) IV which was published in 2019. However, unexpectedly, the Covid-19 pandemic occurred in early 2020 which caused the death rate to be higher than normal situation. This study aims to compare MTI IV which was made with assumptions before the Covid-19 pandemic according to the death rate in Indonesia during the Covid-19 pandemic. This study uses secondary data, by finding the probability of death in Indonesia by calculating the death rate in Indonesia based on population data according to age group classifications obtained from BPS (Badan Pusat Statistik) Indonesia. Furthermore, both data were compared using Procrustes analysis to calculated the level of conformity. The results showed that 75.97% of the data matched MTI IV with the death rate during the pandemic. If the insurance company wants more accurate results, they can be adjusted to the Indonesian Mortality Table using data during the pandemic. If it is quite satisfied with the accuracy of 75.97%, the company can continue to use MTI IV.
Highlights
The number of deaths in Indonesia due to Covid-19 up to of July 25, 2020, was 83,279 people, this fairly large number of deaths due to Covid-19 made most people nervous and resulted in the government treating several of restrictions on social access for the community (Munandar et al, 2020; Suyatna, 2021)
This study aims to compare Mortality Table Indonesia (MTI) IV which was made with assumptions before the Covid-19 pandemic according to the death rate in Indonesia during the Covid-19 pandemic
The results showed that 75.97% of the data matched MTI IV with the death rate during the pandemic
Summary
The number of deaths in Indonesia due to Covid-19 up to of July 25, 2020, was 83,279 people, this fairly large number of deaths due to Covid-19 made most people nervous and resulted in the government treating several of restrictions on social access for the community (Munandar et al, 2020; Suyatna, 2021). The World Health Organization (WHO) defines mortality as an event of the permanent disappearance of signs of life, which usually occurs at any time after a live birth (Maqableh and Alia, 2021). Information about mortality has an important role for the government and private institutions in the context of development planning, evaluation of population policy programs, and as a reference for insurance companies in setting premium prices (Astor et al, 2020; Devereaux et al, 2002). The death of a person no one knows for sure, but in mathematics, there is something called probability. Opportunity is a possibility that might occur in a problem (Johnson and Wichern, 2014).
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