Life Insurance Products Research Articles

A hybrid data mining framework for variable annuity portfolio valuation

AbstractA variable annuity is a modern life insurance product that offers its policyholders participation in investment with various guarantees. To address the computational challenge of valuing large portfolios of variable annuity contracts, several data mining frameworks based on statistical learning have been proposed in the past decade. Existing methods utilize regression modeling to predict the market value of most contracts. Despite the efficiency of those methods, a regression model fitted to a small amount of data produces substantial prediction errors, and thus, it is challenging to rely on existing frameworks when highly accurate valuation results are desired or required. In this paper, we propose a novel hybrid framework that effectively chooses and assesses easy-to-predict contracts using the random forest model while leaving hard-to-predict contracts for the Monte Carlo simulation. The effectiveness of the hybrid approach is illustrated with an experimental study.

Analisis Peran Underwriter dalam Menyeleksi Risiko pada Produk Asuransi Jiwa Syariah di Allianz Cabang Kota Padang

This study aims at the role of the underwriter in selecting in sharia life insurance products, knowing the obstacles encountered by the underwriter in selecting the risk and the solutions applied to overcome these obstacles, and knowing the underwriting process of sharia life insurance at allianz padang city branch . The type of research used is descriptive research, with a qualitative approach. The conclusions of this study briefly are: (1) Underwriters have an important role in insurance companies because underwriters determine whether the insurance coverage can be accommodated by the company or not. (2) Obstacles encountered by underwriters in selecting risks are the availability of incomplete participant data, previous experience data of the insured and prospective insured not providing the desired budget and benefits, while the solution is to contact the agent concerned to obtain additional information needed by the underwriter, apply analysis to groups of prospective insurance participants as new participants, and provide standard premium rates and benefits. (3) The underwriting process begins when marketing applies for SPPA until the issuance
 Keywords: Underwriting, Underwriter, Sharia Life Insurance

Assessing the Current Situation of Business Activities of Vietnamese Life Insurance Enterprises

By methodology research method, the article has synthesized information about the history of the formation and development of life insurance in the world and in Vietnam. As a country in the group of developing countries, the insurance industry, including life insurance, is considered to have a lot of potential for future development with the advantage of a young population and a growing economy. From the insurance market data over the years, the article has analyzed the business performance of Vietnamese life insurance enterprises. Accordingly, the premium revenue of the entire insurance market has increased continuously over the years with the average number of new policies reaching 3,024,004 contracts/year or the diversified distribution channel size is also a reason increase in market revenue. However, it also has limitations such as the strong but unbalanced market size, the number of Universal life and Term Insurance products accounted for 87% and the number of contracts canceled before expiration has increased continuously over the years. years. The article also identifies development opportunities and challenges such as increasing competition, a high number of insurance product distribution agents leaving every year, and an inconsistent information technology infrastructure.

Explainable AI for paid-up risk management in life insurance products

Explainable artificial intelligence (xAI) provides a better understanding of the decision-making processes and results generated by black-box machine learning (ML) models. Here, we outline several xAI techniques in order to equip risk managers with more explainable ML methods. We illustrate this by describing an application for the more effective management of paid-up risk in insurance savings products. We draw on a database of real universal life policies to fit an initial logistic regression model and several tree-based models. We then use different xAI techniques, including a novel approach that leverages a Kohonen network of Shapley values, to offer valuable perspectives on tree-based models to the end-user. Based on these findings, we show how non-trivial ideas can emerge to improve paid-up risk management.

Economic and climate policy uncertainty, geopolitical risk and life insurance premiums in China: A quantile ARDL approach

This study explores the asymmetric and nonlinear effects of economic policy uncertainty (EPU), climate policy uncertainty (CPU), and geopolitical risk (GPR) on China's life insurance premiums (LIP) by using Quantile Autoregressive Distributed Lag (QARDL) approach across different quantiles of LIP. The results show that EPU negatively affects LIP in most cases except the lowest quantiles, GPR has a negative influence among the higher quantiles, and the negative effects of CPU on LIP are significant mainly in higher quantiles. The findings suggest that investors and firms treat life insurance products as secure assets when policy instability and geopolitical issues become serious.

RESERVES FOR SHARIA LIFE INSURANCE CONTRIBUTIONS USING THE GROSS PREMIUM VALUATION (GPV) METHOD BASED ON VASICEK MODEL

Determining reserve for life insurance contributions has factors that influence it, such as contributions developed by participants and operational costs. Based on the financial services authority Number 71 of 2016, related to the company's financial health, one of which is that sharia insurance companies can make reserve for contributions. In this study, we discuss the calculation of the contribution of the initial value of return on investment which is sensitive and different calculations for the technical calculation of the contribution of sharia life insurance using the gross premium assessment method (GPV) by applying the Monte-Carlo simulation and using the vasicek model in calculating the discount factor so that with this method can recommend several possible contributions and contributions reserve from sharia life insurance products.

The Response Analysis of Life Insurance Companies in Low Interest Rate Environment

As China's economic development situation changes from a high-speed growth period to a stable growth period, and based on promoting high-quality economic development, realizing industrial development and reform, and stimulating internal and external development vitality, China's interest rate is entering a downward stage and will continue for a long period of time. At the same time, affected by the global spread of the new coronavirus epidemic, domestic life insurance companies still face many difficulties in completing industrial transformation and industrial upgrading, and achieving sustainable development in the new environment and new era. On the one hand, life insurance companies in the low interest rate environment, how to effectively follow the three principles of investment in insurance funds, while achieving social and economic benefits. On the other hand, how to overcome the current difficulties faced by life insurance companies and continue to promote the innovation and upgrading of operating methods. We make four key statements on the coping strategies of life insurance companies in the continuous low interest rate environment :(1) The rate design of life insurance products is more in line with the potential expected interest rate changes and grasps the overall development direction of the country. (2) Build new channels of investment and financial management, strengthen the use of funds. (3) Starting from the marketing mode of the new life insurance business accelerated by the epidemic situation, life insurance companies focus on building a complete online insurance sales platform based on science and technology innovation and relying on the Internet. (4) Accelerate the construction of talent training and build a reasonable talent grow system.

The Impact of Product-Dependent Policyholder Risk Sensitivities in Life Insurance: Insights from Experiments and Model-Based Simulation Analyses

Abstract In contrast to previous work, this paper studies the product-dependent risk sensitivities of policyholders toward the reported safety levels of a life insurer in a long-term multi-period setting. With this aim, we first conduct two choice-based conjoint analyses using a German survey panel to investigate the effect of an insurer’s reported default probability on individuals’ willingness to pay for annuities and term life insurances. Our experimental results suggest that individuals (sharply) reduce their willingness to pay for probabilistic life insurance products, with (strong) product-specific differences. In light of these observations, the paper then revisits the impact of these differing risk sensitivities on a life insurer’s risk situation in a simulation study based on an asset-liability model with a specific focus on a life insurer offering annuities and term life insurances. The results reveal the potentially strong impact of such product-dependent risk sensitivities on risk-reducing portfolio compositions. One main driver is the deviation between risk sensitivities depending on the respective product (annuities vs. term life).

Community concerns about genetic discrimination in life insurance persist in Australia: A survey of consumers offered genetic testing

Fears of genetic discrimination in life insurance continue to deter some Australians from genetic testing. In July 2019, the life insurance industry introduced a partial, self-regulated moratorium restricting the use of genetic results in underwriting, applicable to policies up to certain limits (eg AUD$500,000 for death cover).We administered an online survey to consumers who had taken, or been offered, clinical genetic testing for adult-onset conditions, to gather views and experiences about the moratorium and the use of genetic results in life insurance, including its regulation.Most respondents (n = 367) had undertaken a genetic test (89%), and had a positive test result (76%; n = 243/321). Almost 30% (n = 94/326) reported testing after 1 July 2019. Relatively few respondents reported knowing about the moratorium (16%; n = 54/340) or that use of genetic results in life insurance underwriting is legal (17%; n = 60/348). Only 4% (n = 14/350) consider this practice should be allowed. Some respondents reported ongoing difficulties accessing life insurance products, even after the moratorium. Further, discrimination concerns continue to affect some consumers’ decision-making about having clinical testing and applying for life insurance products, despite the Moratorium being in place. Most respondents (88%; n = 298/340) support the introduction of legislation by the Australian government to regulate this issue.Despite the introduction of a partial moratorium in Australia, fears of genetic discrimination persist, and continue to deter people from genetic testing. Consumers overwhelmingly consider life insurers should not be allowed to use genetic results in underwriting, and that federal legislation is required to regulate this area.

A Qualitative Study on Bancassurance Products and Its Implementation for Efficient Customer Experience in Pakistan

Distribution of life insurance product in Pakistan is challenging for insurers to facilitate customers. Bancassurance products develop a bridge of life insurance product distribution via bank to facilitate customers. The implementation of Bancassurance and its players, including banks, the distribution channel, insurance services, financial services, and service quality, are discussed in this research. Because of their relationship and trust with the bank, particularly the local bank branch, customers prefer Bancassurance. Digitalization is another crucial factor that can significantly improve this system. Adopting modern technology and digitalization can facilitate consumer accessibility and increase this product's sales. A qualitative methodology has adopted to conduct this research. Thematic analysis has applied as a tool of research in order to transcribe interviews conducted from 10 participants. Purposive sampling was used to collect data in order to obtain detailed information from interviewees. Bancassurance is a tactical arrangement that offers consumers insurance services in addition to numerous other financial services. The themes are generated from the factors explored during interview. Since it has a competitive edge over others, bancassurance has a wider scope than other channels. In a partnership, banks and insurance companies market each other's insurance products to their respective customers.

A Qualitative Study on Bancassurance Products and Its Implementation for Efficient Customer Experience in Pakistan

Distribution of life insurance product in Pakistan is challenging for insurers to facilitate customers. Bancassurance products develop a bridge of life insurance product distribution via bank to facilitate customers. The implementation of Bancassurance and its players, including banks, the distribution channel, insurance services, financial services, and service quality, are discussed in this research. Because of their relationship and trust with the bank, particularly the local bank branch, customers prefer Bancassurance. Digitalization is another crucial factor that can significantly improve this system. Adopting modern technology and digitalization can facilitate consumer accessibility and increase this product's sales. A qualitative methodology has adopted to conduct this research. Thematic analysis has applied as a tool of research in order to transcribe interviews conducted from 10 participants. Purposive sampling was used to collect data in order to obtain detailed information from interviewees. Bancassurance is a tactical arrangement that offers consumers insurance services in addition to numerous other financial services. The themes are generated from the factors explored during interview. Since it has a competitive edge over others, bancassurance has a wider scope than other channels. In a partnership, banks and insurance companies market each other's insurance products to their respective customers.

Determinants of Insurance Awareness and Perceived Value and Their Impact on Unit Linked Insurance Customer Retention With The COVID-19 Pandemic as Moderator

Purpose – During the covid 19 pandemic life insurance companies faced matter of concerning to extension of customers of unit linked insurance policies. Unit-linked life insurance product has become a major contributor to the company's profits. This study aims to investigate the factors that influence insurance awareness and perceived value and their impact on customer retention with the covid 19 pandemic as a moderator.
 Design/methodology/approach – This study conducted an online survey and total of 230 completed questionnaires were collected from customers in Jakarta. The data was analyzed using SmartPLS software.
 Findings – Results indicate that insurance awareness, perceived value, and covid 19 pandemic significantly influence customer retention. Insurance agents, psychological factors and financial literacy significantly influence insurance awareness. E-service quality significantly affects perceived value. The interaction between the covid 19 pandemic and insurance awareness and the interaction between the covid 19 pandemic and perceived value did not significantly affect customer retention.
 Originality/value – The study contributes to the marketing literature by proposing a conceptual model: the life insurance customer retention model. The findings offer practical guidance to life insurance companies to keep the customer loyalty.

The Influence of Perceived Risk and Consumer Knowledge on Behavior Intention with Consumer Trust As an Intervening Variable in Life Insurance Products in Balikpapan and Makassar

Life insurance is a financial product that protects individuals from the risk of unfortunate events such as death and disability. Although the life insurance market is showing increased penetration, many still do not have life insurances. Purpose: This research aimed to analyze the influence of consumer trust in the relationship between the relationship of perceived risk and consumer knowledge with behavior intention. Design/methodology/approach: This research used a quantitative approach. The research was conducted on 210 respondents in Makassar and Balikpapan. Data were collected through an online questionnaire. The data collected were analyzed using the Structural Equation Modelling (SEM) with the AMOS application. Findings: Perceived Risk: financial risk, performance risk, physical risk, social risk and overall risk have negative influences and not significant to behavior intention. Consumer knowledge have a positive influence and significant to behavior intention. Consumer trust was a variable that mediated the influence of perceived risk and consumer knowledge on behavior intention.

CONSUMER BEHAVIOR IN LIFE INSURANCE PLAN: A PHILIPPINE STRATEGIC ANALYSIS

Studying consumer behavior in purchasing life insurance plan is important to marketeers, consumers and also to society. The human life is the most valuable asset, and the most crucial sort of insurance is life insurance, which offers financial security to an individual and his family in the event of unforeseeable risks or harm. The advent of global pandemic led to an avenue where preparedness for life preservation is of great importance. Consumer behavior around life insurance products is evolving quickly. The descriptive-based study was chosen with the goal of examining the demographic profile of life insurance plan holders and identify the different factors that affect the consumer’s decision in purchasing life insurance plan. These include, but not limited to, social factors, values of the Filipino family, psychological factors, income impact and marketing initiative of insurance companies. In the paper, various insurance-related issues have been covered. The study was conducted in the Province of Laguna, with a sample size of 40 respondents through online distribution of questionnaires, employing snowball sampling. Furthermore, the study analyzed the relationship between the different factors that affect consumer’s behavior to purchase policies in relation to the purchaser’s demographic profile.

ESTIMASI CADANGAN KLAIM PRODUK ASURANSI JIWA KREDIT UNTUK PESERTA PENSIUN

Theoretically, insurance companies rarely suffer losses. Insurance companies in managing finances, are very careful, because they will face possible risks in the future in the form of claim payments. Therefore, in selling the products, they do not use the usual forms of marketing. They use agents and brokers in distributing risk products that are sold. In addition, for certain reasons, the company also cooperates with other parties. This cooperation is essentially a form of strategic alliance. Namely cooperation between the insurance company as the issuer of the policy with the bank as the owner of credit for customers. The problem is how insurance companies face the risk of claims in the future for bank customers who have retired status and are vulnerable to the risk of death. This article discusses term loans from customers at a bank as the insured who has retired status and they are guaranteed by an insurance company as the insurer. How much funds are provided by the insurer in the future to pay the risk of death (claims) of the insured? Using the semi-continuous prospective reserve method for term life insurance products, the results show that the insurer is experiencing liquidity difficulties in order to bear the burden of claims that have already occurred and are expected to suffer losses later. The reinsurance scheme offered has also not been able to cover the insurer's losses. Therefore, the most feasible scheme to assist the insurer's liquidity due to high claims is to enlarge new policies through the scheme of entry age for the insured with a younger age while continuing to run the reinsurance scheme.

Pengaruh Daya Tarik Terhadap Keputusan Pembelian Produk Asuransi Jiwa Syariah (PRUcinta) pada PT Prudential Syariah Binjai

This study focuses on the effect of attractiveness on purchasing decisions for sharia life insurance products (PRUcinta) at PT. Prudential Syariah Binjai. Thus, this study aims to analyze the influence of attractiveness on purchasing decisions for sharia life insurance products (PRUcinta) at PT. Prudential Syariah Binjai. The method used in this study is to use a qualitative method that will reveal the social meaning of the phenomenon obtained through the research subject. The results achieved are the influence of the process of a product, service, process and tariff on purchasing decisions of sharia life insurance products at PT. Prudential Syariah Binjai.
 Keywords: influence, attractiveness, decision

Profitability determinants of life insurance companies in the Republic of Serbia

Background: Based on the results of research on the influence of certain internal and external factors on the profitability of insurance companies in the countries in Europe, America, Asia and Africa in the 21 st century which were published in a significant number of scientific and professional papers, the present study analyses insurance companies in Serbia in the period from 2015 to 2021. We chose this analysis bearing in mind the previous negative experiences and expressed distrust in the financial system, which greatly affected the readiness of policyholders to invest in life insurance products, as well as affecting significantly the development of life insurance in Serbia. Purpose: The aim of the paper is to present the business results of the insurance companies on the Serbian market in the analysed period and to determine which business performance the management of an insurance company should pay attention to in order to ensure positive business results. Study design/methodology/approach: We applied a fixed effects model on the nine selected variables. In the model, return on assets (ROA) is used as a dependent variable, while operating margin, expense ratio, investment ratio, growth rate of written premium of a company, company size, log (financial leverage), log (liquidity ratio), and market share are independent variables. Findings/conclusions: The results of the research indicate that there is a statistically significant and positive impact of operating margin and liquidity ratio on ROA, and statistically significant but negative impact of expense ratio and financial leverage on ROA. Limitations/future research: The limitation of our profitability analysis is that we were unable to analyse the impact of individual life insurance products on profitability. Bearing in mind numerous and significant social and economic changes over the last two years, the directions of our future research will be focused on their impact on the business operation of insurance companies.

A Study on Perception of Taking Life Insurance Products with Reference to Chennai City

The insurance industry in India has seen an array of changes in the past one decade. The year saw an uprise in the Indian insurance sector as major structural changes took place with the ending of the government monopoly and the route of the Insurance Regulatory and Development Authority (IRDA) Bill lifting all entry restrictions for private players and allowing foreign players with some entry restriction and limits on direct investment ownership. With the fast-changing liberalization, globalization and privatization policies, the changing and growing needs and demands of people have made the insurance industry more competitive. Both public and private players now offer greater choice in terms of products and services. They also make valuable efforts to create awareness about the benefits and significance of insurance although there is still a blocking point among the people. This paper analyzes and rates all the life insurance companies by analyzing certain variables, measuring the customer perception, purchase behavior, and consumer awareness regarding the life insurance industry.

The study of structural changes in the life insurance product portfolio and payments in Bulgaria for the period 2017-2021

The study of structural changes in the life insurance product portfolio and payments in Bulgaria for the period 2017-2021

De Moivre Law Application for the Construction of Mortality Tables Based on Indonesian Mortality Tables 2019

The mortality table or often referred to as the life table is the main instrument used by actuaries in building premium and reserve structures for life insurance products, annuities, and pension programs. The mortality table provides a complete description of the mortality rate and life expectancy and shows the pattern of death of a group of people born at the same time based on the age they have reached and plays an important role as a basis for calculating the level of life expectancy in the future. This article aims to find out how to construct a mortality table with reference to the 2019 TMI for men with de Moivre's Law. In the results of the construction with de Moivre's law, the lowest value occurred at the age of 0 years, namely = 0.00900901, while the highest value occurred at the age of 110 years, namely = 1. Based on the construction of the value in the 2019 TMI for men using de Moivre's law, which is compared with the value in the 2019 TMI for men, the results tend to be the same.