Value Of Premiums Research Articles

Effect of age-related premium readjustment on health insurance cancellation in Brazil: Regression discontinuity approach.

Age is one of the most relevant observable risk attributes in determining the value of health insurance premiums. Empirical evidence indicates that the cost of health insurance is the leading cause of contract switching, which can compromise access to healthcare services and potentially result in treatment discontinuities. Using data from a Health Maintenance Organization in the Southern region of Brazil, we examined the effect of health plan price readjustment resulting from changes in the beneficiary's age group on disenrollment or switches to a more limited coverage plan. The estimates were obtained using the method of regression discontinuity. The main findings indicate that for age group transitions at 59years old, the price readjustment effect led to an increase in contract cancellations and switching to cheaper plans. These findings highlight that an important consequence of the difference in premium sensitivity among age groups is that the exit of individuals from the health insurance sector is selective in age. The results of this paper can support policymaking to improve access to health insurance.

ESTIMATION OF EARTHQUAKE INSURANCE PREMIUM BY CONSIDERING EARTHQUAKE PROBABILITY AND THE DAMAGE RATIO OF BUILDINGS IN BANDA ACEH AND SIBOLGA CITY

Indonesia is one of the countries prone to earthquakes with significant damage. An area that is frequently hit by earthquakes is Sumatra Island. Several cities, such as Banda Aceh City and Sibolga City on Sumatra Island, quite often experience tremors. For this reason, mitigation efforts are needed through earthquake insurance in managing disaster risk in earthquake-prone areas such as Banda Aceh City and Sibolga City so that it can reduce the impact caused by earthquake disasters. This research aims to determine the probability of an earthquake occurring in Banda Aceh City and Sibolga City using the Probabilistic Seismic Hazard Analysis (PSHA) method. Apart from that, this research also aims to determine the value of the building damage ratio and the estimated value of pure earthquake insurance premiums in Banda Aceh City and Sibolga City. The analysis results show that the estimated pure premium value for residential commercial and industrial building types with less than nine floors in Banda Aceh City is around 2.96 and 21.03 times greater than that of Sibolga City. Meanwhile, the estimated pure premium value for commercial and industrial building types with more than nine floors in Banda Aceh City is more minor, around 6.42 times, compared to Sibolga City.

CHOICE OF THE FORM OF TAXATION OF A MICRO-ENTERPRISE AS AN INSTRUMENT OF TAX OPTIMILISATION IN THE LIGHT OF THE CHANGES IN THE POLISH DEAL

The purpose of this article is an evaluation of the impact of changes in regulations concerning income tax assessment and premiums for medical insurance from economic activity of microenterprises as part of the so-called „Polish Deal” on the value of regulatory liabilities arising from income tax and health contribution in context of various forms of taxations. Ambiguity and changeability of the regulations as well as an increase in regulatory liabilities is not helpful to entrepreneurs in business development and constitutes obstacles, hindering the advancement of the microenterprise sector. Choosing the taxation form of conducted business is very significant for the amount of income tax expense of microenterprise. Amendments to tax regulations due to the 2022 introduction of the „Polish Deal” caused a revolution in forms of accounting for income tax and regulations defining the value of premiums for medical insurance in microenterprise groups. It results from the conducted research that implementing regulations of the „Polish Deal” caused the increase of the regulatory liabilities for microenterprises which in turn in some cases result in a drop in profitability of conducted activity that can hinder entrepreneurship and lead to abandonment of conducting economic activity.

Penerapan Model Harga Opsi Black Scholes dalam Penentuan Premi Asuransi Jiwa Dwiguna Unit Link

Unit-linked life insurance is one of the most popular insurance products. This product connects the element of protection with investment assets in a product. Regarding option pricing, the Black Scholes model is one method that can be used. The advantage of this model is that it is a call option valuation model and is in great demand among financial associations because the option rate obtained from the calculation of this model is an accurate value. This research aims to determine the premium value of unit-linked endowment life insurance by applying the Black Scholes option pricing model. This research begins by selecting the stocks used and completing the information needed, including the insured's age, gender, insurance period, and life expectancy based on TMI in 2011. The return value and stock volatility can be calculated based on the stock data used. Furthermore, applying the Black Scholes option pricing model on customer data with male gender, age 25 years, a selected interest rate of 5.75%, and an insurance period of 5 years obtained a unit link insurance premium value of Rp123,058,412. The results showed that the Black Scholes option price model is determined by stock prices, interest rates, insurance periods, and volatility. When the longer period of insurance taken causes the premium value to be higher, and for different ages, with increasing age, the value of premiums paid will also increase.

APPLICATION OF THE BLACK SCHOLES METHOD FOR COUNTING AGRICULTURAL INSURANCE PREMIUM PRICE BASED ON RAINFALL INDEX IN KAPUAS HULU REGENCY

High-intensity rainfall is one of the factors that can interfere with the state of agriculture. Agricultural insurance is an insurance that can be used to reduce risks related to agricultural losses such as rice production. Climate-based agricultural insurance is a management of climate-related risks. This study aims to determine the rainfall index and calculate the value of agricultural insurance premiums based on the climate index (rainfall) in Kapuas Hulu Regency using the Black Scholes method. In calculating the value of agricultural insurance premiums based on the rainfall index, it starts by calculating the value of the correlation coefficient between rainfall and rice production. Then the value of the rainfall index is obtained, which then the value of the index is tested for lognormality to meet the assumptions on the Black Scholes method, after which it calculates the ln return value of the index value obtained, the last step is to calculate the value of agricultural insurance premiums. Based on case studies, the results obtained are when the risk-free interest rate is 3.5% and rainfall is 54.23 mm the premium paid is Rp 2,386,824 and when the rainfall is 75.39 mm the premium paid is Rp 3,898,142. If the risk-free interest rate is 4% and the bulk is 54.23 mm, the premium paid is IDR 2,383,842, and when the rainfall is 75.39 mm the premium paid is IDR 3,893,272. When the risk-free interest rate is 5% and rainfall is 54.23 mm the premium paid is Rp 2,377,890 and if the rainfall is 75.39 mm the premium paid is Rp 3,883,551. So, the higher the rainfall, the greater the premium value payment. If the risk-free interest rate gets bigger then the premium payment will be smaller.

NET SINGLE PREMIUM ON CRITICAL ILLNESS INSURANCE WITH MULTI-STATE MODEL

The chances of someone getting a disease or suffering from a critical illness are very large, especially when they get older, the chances of getting a critical illness will be higher. A guarantee of the future is indispensable if a person suffers from a critical illness at any time and requires considerable costs to undergo treatment. Insurance is one of the right choices and is beneficial for people with critical illnesses. In this study, the calculation of Critical Illness insurance premiums was carried out to determine the value of premiums that must be paid by a person when suffering from a critical illness. The types of critical illnesses used include cancer, heart disease, stroke, kidney failure, diabetes mellitus, and hypertension. Health insurance that protects insureds suffering from critical illnesses is Long Term Care insurance with the Annuity as A Rider Benefit product. The multi-state model is used to determine the probability of a person suffering from a critical illness. The benefits obtained are in the form of death compensation, and treatment costs when the insured is diagnosed with a critical illness. The data used are data on the prevalence of critical illnesses and the percentage of deaths due to critical illnesses. In this study, we will compare the amount of premium that must be paid by the insured with different interest rates, gender, coverage period, and age. The higher the age at the beginning of following the insurance, the higher the premium. The higher the interest rate during the payer's period, the lower the premium.

WTI Crude Oil Options Market Prior to and During the COVID-19 Pandemic

The COVID-19 pandemic has caused turbulence in many areas of the global economy. It also contributed to an increase in volatility on the energy commodities market. This spilled over into the derivatives market, particularly the crude oil futures market. The aim of the article is to compare the costs and effectiveness of using options on WTI oil from before and after the pandemic. The analyzes took into account the value of option premiums and final results obtained by buyers of call options from March 1, 2018 to April 14, 2022. The results showed that buyers of call options during the pandemic, despite paying much higher option premiums, experienced significantly higher payouts and rates of return. They were the highest for options with the longest expiry periods of 21-30 days. Research also showed that during the pandemic, options with strike prices set at a level higher than the price of oil on the contract date had particularly high rates of return, while the highest payout values were achieved by buyers of call options with low strike prices.

The Effect of Premium, Claim, Investment, Tabarru' Fund, and Underwriting to the Profit of PT. Asuransi Sinar Mas Syariah Period 2013-2019

This study analyzes the effect of premiums, claims, investment returns, tabarru 'funds, and underwriting as the dependent variable and company earnings as independent factors. Whether the five dependent variables can partially affect company profits (individually) or simultaneously (overall), other research analyzes four characteristics, without tabarru' funds as an independent variable. This research also takes PT Sinar Mas Syariah as life insurance as the study's object, while others choose Risk Insurance as an object of study. The type of research used is multiple regression analysis. The variable variables to be estimated are explained by variations of several explanatory variables (more than one explanatory variable). That is, several independent variables affect the variable dependent. The process steps analyze the value of premiums, claims, investment returns, and underwriting of company profits. Then, examine the financial statements of insurance companies by comparing the literature related to analysis. The analysis's conclusions are as follows: The regression test results, the coefficient value of -0.181274 & 0.0800 probability is greater than alpha 0.05, so it can be concluded that premium has a negative and not significant effect. Based on regression test results, the coefficient value of 0.437039 is obtained & the probability of 0.0671 is greater than the alpha of 0.05. Hence, the claim has a positive and not significant effect. This means that if claims increase by 1 percent, it will raise profits by 0.437039. The regression test results, (1) the coefficient value is 0.355105 & probability 0.5898 is greater than alpha 0.05, so the claim has a positive and not significant effect. (2) the coefficient value of -0.4227707 & probability 0.3389 is greater than alpha 0.05, so the claim has a negative and not significant impact. (3) the coefficient value of 0.153263 & probability of 0.4012 is greater than alpha 0.05, so the claim has a positive and not significant impact.

Penentuan Cadangan Premi Asuransi Jiwa Dengan Metode Fackler

Insurance is an agreement between two parties, where one party is obliged to pay and the other party has the obligation to provide compensation to the premium payer if something happens to the party in accordance with the agreement that has been made. The main problem faced by insurance companies is that the fees paid through premiums are not sufficient to finance compensation payments at the beginning of the policys, To overcome the shortage of costs the insurance company must have a reserve fund called a premium reserve. The purpose of this study was to determine the reserve for term, endowment and whole life insurance premiums using the Fackler method. The variables used in this study are the customer's age, gender, payment term, interest rate and the sum insured. In this study, premium reserves were calculated for participants aged 30 years, men and women, with a payment term of 30 years, an interest rate of 6.75%, and an insurance value of Rp. 100,000,000. Based on the calculation results, the reserve value of term life insurance premium for customers with 30 years of age and the insurance period of 30 years increases at the beginning of the year to the 21st year, after which it decreases until the reserve at the end of the 30th year, the value of the lifetime insurance premium reserve. life for customers with 30 years of age always increases from the beginning of the year to the last year where the payment for male customers is Rp. 93,176,962 and women in the amount of Rp. 93,296,217,156250. The reserve value of dual-purpose life insurance premiums for customers with 30 years of age and insurance period of 30 years always increases from the beginning of the year to the end of the year of payment of Rp. 100,000,000. The large difference in premium reserves for men and women is due to the higher chance of life for women than men.

PENENTUAN PREMI ASURANSI JIWA BERJANGKA SINGLE LIFE MENGGUNAKAN MODEL COX-INGERSOLL-ROSS (CIR)

Premium is an amount of money that must be paid by the customer at a certain time based on an insurance policy. This study aims to determine the value of single life term life insurance premiums using the Cox-Ingresoll-Ross (CIR) interest rate model. There are differences in the value of men's and women's premiums from the calculation of single life term life insurance premiums using the CIR interest rate model. The value of the premium paid by men is more expensive than the value of the premium paid by women. The premium value for men is greater than 1.5 times the premium value for women.Key words: premium, life insurance, CIR model

Study on Post Listing Performance of IPO

The recent development in the stock market and the economic growth of the nation attracted many new investors across the world. This has further encouraged the capital market to get wonderful performance, especially in Primary Market through IPO. The corporate companies and the government institution raise finance through equity and/or debt. And the unlisted companies acquire the capital by issuing the shares through Initial Public Offering (IPO) in the primary market. In the recent past, in spite of having uncertainty in the various investment avenues, IPO and its post-performance have yielded a competent return. The paper focuses on analysing the performance of post-listing of IPOs in the national exchange which were listed in the calendar years 2021 and 2022. The data assembled for the research is based on secondary sources. Various statistical tools are used for conducting the research. Further, it intends to measure the value of share premiums and share pricing on listing day, as well as the IPO return's progressive increase. The study also attempts to assess if these IPOs were under-priced in the short run, as well as identify key factors that influence the short-term movement of such IPOs. The study may also bring some inputs to possible investors to decide to invest in IPOs.

Expanding insurability through exploiting linear partial information

<abstract> <p>This contribution aims to expand insurability using partial linear information (LPI) on probabilities of the type, $ {r}_{1}\ge {r}_{3} $ (with $ {r}_{1}+{r}_{2}+{r}_{3}+\dots {r}_{n} = {1} $). LPI theory permits to exploit such weak information for systematic decision-making provided the decision-maker is willing to apply the maxEmin criterion in a game against Nature. The maxEmin rule is a natural generalization of expected profit (probabilities are known) and the maximin rule (probabilities are unknown). LPI theory is used to find out whether a crypto assets portfolio offered to an insurance company is insurable. In an example, an unfavorable future development of losses causes maximum expected loss to exceed the present value of premiums, rendering the portfolio uninsurable according to maxEmin. However, this changes when LPI concerning this development is available, while the integration of uncertain returns from investing the extra premium fails to achieve insurability in this example. Evidently, LPI theory enables insurers to accept risks that otherwise are deemed uninsurable.</p> </abstract>

Simulasi Jumlah Klaim Agregasi Berdistribusi Poisson Dengan Besar Klaim Berdistribusi Gamma dan Rayleigh

A claim is a transfer of risk from the insured to the guarantor. Claims that occur individually are called individual claims, whereas collections of individual claims are called aggregation claims in a single period of vehicle insurance. Aggregation claims consist of a pattern of the number and amount (nominal value) of individual claims, so that the model of aggregation claims is formed from each distribution of the number and amount of claims. The distribution of claims is based on the probability density function and the cumulative density function. One method that can be used to obtain a claim aggregation model is to use convolution, which is by combining the distribution of the number of claims and the distribution of the amount of claims so that the expected value can be obtained to predict the value of pure premiums. In this paper, aggregation claim modeling will be carried out with the number of claims distributed Poisson and the amount of claims distributed Gamma. As comparison, we compare it with claim amount distributed Rayleigh. By using VaR (value at risk) and MSE (Mean Square Error) indicators, the results of the analysis show that the Rayleigh distribution is better used for distributing data that has extreme values.

PENDEKATAN OPSI CASH-OR-NOTHING UP AND IN BARRIER UNTUK PENENTUAN NILAI PREMI ASURANSI PERTANIAN

Crop insurance is a type of insurance that provides protection to farmers who hold an insurance policy for losses due to crop failure. Extreme weather, especially rainfall, has been the main cause of the crop failure. Therefore, the type of crop insurance based on weather or rainfall must be developed and applied. This paper will discuss the cash-or-nothing up and in barrier option approach for determining insurance premiums where the risk of loss in terms of high rainfall, then compare it to the Black-Scholes option approach. In this approach, the claim limit is based on the rainfall index and the value of the barrier is determined according to the size of the extreme rainfall. We use cumulative rainfall data in the first subround in Sleman regency as a case study. The conclusions obtained are barrier value has a negative effect on the value of insurance premiums and claim limit value has a positive effect. Besides the premium value with this barrier option approach is cheaper than the Black-Scholes option approach, this approach method more interesting to apply because of the barrier value addition.

The value of aesthetics in the BIPV roof products segment: a multiperspective study under European market conditions

ABSTRACT On account of supportive policies and improving technologies, Building Integrated Photovoltaics (BIPV) is gaining attention. Although the BIPV offer is costly, the customers are willing to accept premium rates for more visually appealing systems. The objective of this paper is to estimate and confront the actual market costs of the esthetics offered by the market and to understand the perceived value of esthetic premiums on the customer end. The topic is approached by employing a case study to assess the cost of investment, to learn the economic benefit throughout the entire system’s life cycle and to discern its impact on the value of the residence. The results indicate that from the system’s cost perspective, the current premium reaches over 80% of the Building Applied PV (BAPV) while maintenance plays an important role. Although the Net Present Values (NPV) are positive for both: BIPV and mainstream PV, the Internal Rate of Return (IRR)’s difference reaches 7%. The BIPV’s 0.14Euro/kWh of Levelized Cost of Electricity (LCOE) stay below the current market standards so the economic benefits brought by the system are conceivably assured. It has been found that the value of esthetics premium is priced similarly for both the manufacturer and customer. In the latter stages of the BIPV industry’s evolution, the suppliers focus on the functionality of the products, their complex installations, and expensive maintenance. These elements have negative impacts on the esthetics premium value and hinder its acceptance.

Risk Analysis and Calculation of Insurance Premiums on Coffee Export Activities in North Sumatera Province

Coffee export activities in North Sumatera can be carried out using a variety of transaction systems. However, any transaction system has risks that may occur at any time. Risk management must be applied in coffee export activities. One common method used to manage risk is to use insurance services. This study aims to identify the type of transaction system that used by coffee exporters in North Sumatera Province, then analyze the risks that can occur in coffee export activities in this province and analyze the amount of insurance premiums on coffee export activities there. The location of the study was intentionally determined, namely in the North Sumatera Province. The research sample was 30 active exporters registered with the Indonesian Coffee Exporters Association of the North Sumatera Regional Board, determined by census. Primary data collected using a questionnaire and secondary data obtained from documentation. Transaction system identified using descriptive methods, while risk analysis is by calculating the risk score value. As for calculating the amount of insurance premiums carried out using Black-Scholes. The results found that there were three transaction systems that were used by research respondents in exporting coffee, namely letters of credit, advance payments and open accounts. Open Account is used by all respondents. While the export risk which is a priority risk in this research is at the risk of production. The average value of insurance premiums obtained using the Black-Scholes method is 7.82 percent of the total coverage.

Some actuarial mathematical models for insuring the susceptibles of a communicable disease

Using epidemiological and actuarial analysis, this paper formulates some new actuarial mathematical models, called S-I-DR-S models, for insuring the susceptibles of a population exposed to a communicable disease. Epidemiologically, the population is structured into four demographic groups, namely: susceptibles [Formula: see text], infectives [Formula: see text], diseased [Formula: see text] and recovered [Formula: see text], with the latter automatically re-entering the group of susceptibles [Formula: see text]. The insurance policies are targeted at the members of the susceptible group who face the risk of infection and death due to the disease. Using actuarial techniques and principles, we determine some interesting features of the model, namely, (a) financial obligations of the parties, (b) present value of premiums, (c) quantum of claims by infected policy holders (PHs), (d) quantum of claims on behalf of deceased PHs, (e) cumulative insurance reserve for annuity and (f) lump sum plan. To check the risk of insolvency, premium adjustment for the PHs is also considered.

Estimation of the Amount of Rice Crop Insurance Premium in the Citarum River Basin

Determination of crop insurance premiums in the Citarum River basin can be calculated by mathematical methods. One of the methods of calculation of the premium that is the normal curve methods with data on crop productivity is assumed to be Gaussian. In this thesis are discussed in crop insurance premium calculations Areas Citarum River basin West Bandung Regency with normal curve method with a significant level of coverage. These methods are used because data on crop productivity gained Gaussian. Normal curve method is used without using the assumption of coefficients of variation, and try for some level of coverage. Application materials used are rice crop productivity data in the Citarum River basin of West Bandung Regency in 2008-2014. This research resulted in the value of the rice crop insurance premiums for farmers in the area based on a certain level of coverage.

Coffee export insurance premium estimates from Sumatera Utara Province in international market

Calculation of insurance premiums can be analysed based on a area’s yield index, weather and price volatility. This study reviewed based on the movement of Sumatera Utara coffee export prices. The purpose is to calculate and review the premium insurance for Sumatera Utara coffee exports in the international market. The research location was determined purposively with snowball sampling technique. The research data consisted of primary data which was collected by questionnaire and secondary data from Association of Indonesian Coffee Exporters Regional of Sumatera Utara and province’s statistical data. The coverage amount 32,458,011.5 IDR, it is obtained from calculation of costs incurred by exporters. The Black-Scholes method is used to determine the value of coffee export insurance premiums based on the export prices. The analysis shows that the higher trigger also increases the insurance premium, because the higher risk, so the higher premium.

Some Thoughts on Controlling Federal Spending

This paper is an overview of thoughts about controlling federal spending. At the outset, I note my concern that federal spending is too high and comes at the detriment of good incentives, productivity, and growth. I review the market-oriented economist’s view of the proper role of government and note that many government activities go well beyond them. “Doing something” about it is problematic due to the difficult politics of special interests and of reliance on government programs. In this light, I discuss four specifics. Regarding Social Security, I suggest moving it further toward a program for low-income seniors and allowing younger people outside options. For Medicare, I suggest moving to premium support and capping the real dollar value of government-paid premiums. This should be combined with encouraging competitive pricing of insurance plans for seniors well as for care. This avoids the harsh effects of “cost controls” through price controls and government care restrictions. Mean-tested programs should diminish with strong economic growth, though better targeting and effectiveness can reduce their burden. Finally, I offer hope that fiscal rules (e.g., debt brakes, base closing commissions) may arise to help reduce spending.