Actuarial Studies

Artificial Intelligence (AI) is no longer a futuristic concept confined to technology companies; it has steadily become a transformative force across industries, and the insurance sector is one of the most promising beneficiaries. Within insurance, actuarial pricing has historically relied on mathematical models, statistical techniques, and large but structured datasets to determine premiums and manage risk. However, with the explosion of data and advances in AI, actuarial pricing is undergoing a revolution. In this article, we will explore how AI is reshaping actuarial pricing in the life insurance sector, the opportunities it presents, the challenges that must be overcome, and what the future holds for actuaries working alongside AI.

This article makes a bridge between the theory of optimal auditing and the scoring methodology in an asymmetric information setting. Our application is meant for insurance claims fraud, but it can be applied to many other activities that use the scoring approach. Fraud signals are classified based on the degree to which they reveal an increasing probability of fraud. We show that the optimal auditing strategy takes the form of a “red flags strategy,” which consists in referring claims to a special investigative unit (SIU) when certain fraud indicators are observed. The auditing policy acts as a deterrence device, and we explain why it requires the commitment of the insurer and how it should affect the incentives of SIU staffs. The characterization of the optimal auditing strategy is robust to some degree of signal manipulation by defrauders as well as to the imperfect information of defrauders about the audit frequency. The model is calibrated with data from a large European insuran...

Concern for risks that stifle investment and contribute to vulnerability of the rural poor is a driving force behind various types of agricultural insurance. Insuring small-scale farmers against crop losses to adverse weather or other hazards has attracted public sector involvement in the provision of agricultural insurance in many countries among which Romania. With few exceptions, such interventions have encountered severe problems owing to high administrative costs, moral hazard, adverse selection etc. Government interventions should be aimed at improving the accessibility and quality of private sector insurance. This will require the establishment of a framework for responding to severe systemic events affecting agricultural production, and establishing an appropriate regulatory environment to foster private sector innovation and investment in services for less catastrophic events. Thus, in this item we tried to illustrate some elemental incident to appearances agricultural insu...

Employers should target “flexible employment,” not “phased retirement.” 
• When it comes to today’s older workers, many employers focus on cost - encouraging separation to minimize deferred/delayed retirement.
• Cost-effective, age-neutral, “flexible employment” strategies would enable employers to achieve a competitive advantage by securing willing, capable, motivated, skilled, experienced, productive workers of any age.
• Best solution? Remove statutory, regulatory, and sub-regulatory barriers employers and older workers encounter.

This paper aims at identifying the present situation of the health insurance policies in the rural areas of Bangladesh and explores factors for successful introduction of health insurance schemes for the households living in these areas. The study noted that the rural health insurance schemes are still in a very formative stage in Bangladesh. The results showed that the factors needed to be considered are awareness about health insurance policy, capacity to pay premium to pay premium, efforts of NGOs and other organizations, availability of modern medication facilities and certified doctors and diversification in health insurance policies. These have significant relationships with the overall socioeconomic factors that include level of socioeconomic development, purchasing power of the rural people, development of insurance industry,
influence of international insurance market, etc.

In this paper, we present a procedure for consistent estimation of the severity and frequency distributions based on incomplete insurance data and demonstrate that ignoring the thresholds leads to a serious underestimation of the ruin probabilities. The event frequency is modelled with a non-homogeneous Poisson process with a sinusoidal intensity rate function. The choice of an adequate loss distribution is conducted via the in-sample goodness-of-fit procedures and forecasting, using classical and robust methodologies.

This paper introduces an infinite mixture model which can be used to fit the real data set for 1,296 observations. We also compare the result of the fit for three classical models (i.e. exponential, inverse exponential and lognormal distributions) and that of infinite mixture distribution. The K-S test reveals that the infinite mixture distribution gives the best fit.

This paper introduces an infinite mixture model which can be used to fit the real data set for 1,296 observations. We also compare the result of the fit for three classical models (i.e. exponential, inverse exponential and lognormal distributions) and that of infinite mixture distribution. The K-S test reveals that the infinite mixture distribution gives the best fit.

The focus of this article is to present the modelling tehcniques used on international practice in the evaluation of right life premiums based. The knowledge and models obtained have a common element of mortality risk indicators but these are varied in different parts of the world. The common elements of these studies and models are generally based on a series of indicators which mainly point out their probability of survival and they are named the mortality indicators. These indicators represent the basis for the calculation of the premiums quotes and for the elaboration by the insurers of premium tables. The benefit for the policyholder is to obtain insurance at a fair and competitive price and for the insurer, to maintain the experience of its portfolio in line with mortality assumptions.

In the context of a bright economy towards we aim the insurances represent are activity branch a services department with a financial character and with many valences. Beyond of the essential role of these is that the protection of the properties and the persons too between the various risks, the insurances accomplish many socio-economic functions like as attending as an offeror on the loan capital’s market the achievement of investment by resources or on the value document’s market, the creation of P.I.B. and the creation of jobs. The specialized bearers of risk are presented in any national economy in nowadays and they always take over them the risks which threaten the physical persons and the juridical persons, offering them a high level of certainty in change of the insurance’s prices. Consequently these specialized societies which accomplish the insurant role just unload of their contact partners which are the insurants by material consequences of the risks which threaten them....

An insurance system is a mechanism for reducing the adverse financial impact of random events that prevents the fulfillment of reasonable expectations, i.e. Insurance is designed to protect against serious financial reversals that may result from random events intruding on the plans of individuals. The Life Insurance Company calculates the policy price with the intent to recover claims to be paid and administrative costs and to make a profit. The cost of insurance is determined using the Mortality Table calculated by Actuaries. The insurance companies receive premiums from the policy owner and invest them to create a pool of money from which to pay claims and finance the insurance company’s operations. Rates charged for life insurance increase with the insured’s age because statistically people are more likely to die as they get older. In this paper, we have discussed different types of insurance policies including expenses and its impacts on lives. We also discussed the annual prem...

Our study analyses the extent of integration of the EU market for life and non-life insurance. The main integration indicator used is the market share (premium based) of foreign companies in domestic markets. For the calculation of this indicator, three different kinds of foreign presence are taken into account: foreign presence through merger and acquisitions, through branches and agencies and direct cross-border sales without physical presence. Whereas the static view reveals a high degree of national fragmentation the dynamic view indicates advancing integration. The results also show that integration is even less advanced for life than for non-life insurance and that mergers and acquisitions are the dominant strategy to access a foreign market. Besides summarising the liberalisation history of the European insurance sector and discussing consumer benefits from further integration, the study contributes to a better understanding of obstacles to insurance market integration.

Our study analyses the extent of integration of the EU market for life and non-life insurance. The main integration indicator used is the market share (premium based) of foreign companies in domestic markets. For the calculation of this indicator, three different kinds of foreign presence are taken into account: foreign presence through merger and acquisitions, through branches and agencies and direct cross-border sales without physical presence. Whereas the static view reveals a high degree of national fragmentation the dynamic view indicates advancing integration. The results also show that integration is even less advanced for life than for non-life insurance and that mergers and acquisitions are the dominant strategy to access a foreign market. Besides summarising the liberalisation history of the European insurance sector and discussing consumer benefits from further integration, the study contributes to a better understanding of obstacles to insurance market integration.

In this paper, we have fitted two heavy tailed distributions viz the Weibull distribution and the Burr XII distribution to a set of Motor insurance claim data. As it is known, the probability of ruin is obtained as a solution to an integro differential equation, general solution of which leads to what is known as the Pollaczek-Khinchin Formula for the probability of ultimate ruin. In case, the claim severity is distributed as the above two mentioned distributions, and Pollaczek-Khinchin formula cannot be used to evaluate the probability of ruin through inversion of their Laplace transform since the Laplace Transforms themselves don't have closed form expression. However, an approximation to the probability of ultimate ruin in such cases can be obtained by the Pollaczek-Khinchin formula through simulation and one crucial step in this simulation is to simulate from the corresponding Equilibrium distribution of the claim severity distribution. The paper lays down methodologies to simulate from the Equilibrium distribution of Burr XII distribution and Weibull distribution and has used them to obtain an approximation to the probability of ultimate ruin through Pollaczek-Khinchin formula by Monte Carlo simulation. An attempt has also been made to obtain numerical values to the probability function for the number of claims until ruin in case of zero initial surplus under these claim severity distributions and this in turn necessitates the computation of the convolutions of these distributions. The paper makes a preliminary effort to address this issue. All the computations are done under the assumption of the Classical Risk Model.

In this paper, we present a procedure for consistent estimation of the severity and frequency distributions based on incomplete insurance data and demonstrate that ignoring the thresholds leads to a serious underestimation of the ruin probabilities. The event frequency is modelled with a non-homogeneous Poisson process with a sinusoidal intensity rate function. The choice of an adequate loss distribution is conducted via the in-sample goodness-of-fit procedures and forecasting, using classical and robust methodologies.

In this paper, we present a procedure for consistent estimation of the severity and frequency distributions based on incomplete insurance data and demonstrate that ignoring the thresholds leads to a serious underestimation of the ruin probabilities. The event frequency is modelled with a non-homogeneous Poisson process with a sinusoidal intensity rate function. The choice of an adequate loss distribution is conducted via the in-sample goodness-of-fit procedures and forecasting, using classical and robust methodologies.

Catastrophic events are characterized by three main points: there are relatively rareness, there are statistical unexpected and there have huge impact on the whole society. Insurance or reinsurance is one way of reducing the economic consequences of catastrophic events. Risk management of insurance and reinsurance companies have to have available relevant information for estimation and adjusting premium to cover these risks. The aim of this article is to present two of the useful methods-block maxima method and peaks over threshold method. These methods use information from historical data about insured losses of natural catastrophes and estimates future insured losses. These estimates are very important for actuaries and for risk managers as one of the bases for calculating and adjusting premiums of products covering these types of risks.

The article presents the techniques suitable for practical purposes in general insurance and reinsurance and demonstrates their application. It focuses mainly on modelling and simulations of claim amounts by means of mathematical and statistical methods using statistical software products and contains examples of their applications. Article also emphasizes the importance and practical use of probability models of individual claim amounts and simulation of extreme losses in insurance practice.

The authors review conventional and customary international law respecting the right to self-determination, and conclude that that right is only applicable where the secessionist movement meets certain subjective criteria. First, the seceding unit must be comprised of "people" meeting both subjective and objective international law standards. Second, thatpeople musthave beensubject to denial ofpolitical freedom or human rights in a discriminatory manner. Third, the seceding unit must demonstrate in practical terms that it can, and indeed has, created apracticable and governable state which can assert effective control over reasonably well defined and recognized territory.

In this paper, we approximate the aggregate claims process by using the translated gamma process under the classical risk model assumptions, and we investigate the ultimate ruin probability. We consider optimal reinsurance under the minimum ultimate ruin probability, as well as the maximum benefit criteria: released capital, expected profit and exponential-fractional-logarithmic utility from the insurer's point of view. Numerical examples are presented to explain how the optimal initial surplus and retention level are changed according to the individual claim amounts, loading factors and weights of the criteria. In the decision making process, we use The Analytical Hierarchy Process (AHP) and The Technique for Order of Preference by Similarity to ideal Solution (TOPSIS) methods as the Multi-Attribute Decision Making methods (MADM) and compare our results considering different combinations of loading factors for both exponential and Pareto individual claims.

In this paper, we introduce the alternative methods to estimation for the new weibull-pareto distribution parameters. We discussed of point estimation and interval estimation for parameters of the new weibull-pareto distribution. We have also discussed the method of Maximum Likelihood estimation, the method of Least Squares estimation, the method of Weighted Least Squares estimation and the method of Maximum Product Spacing estimation. In addition, we discussed the raw moment of random variable X and the reliability functions (survival and hazard functions). Further, we compared between the results of the methods that have been discussed using Monte Carlo Simulation method and application study.

Canonical correlation analysis merupakan suatu teknik analisis multivariat yang digunakan untuk menganalisis korelasi antara dua kelompok variabel, independen dan dependen. Canonical correlation analysis fokus pada korelasi antara kombinasi linear dari kelompok variabel independen dengan kombinasi linear dari kelompok variabel dependen. Interpretasi yang dapat dilakukan dalam canonical correlation analysis yaitu terhadap bobot kanonik, muatan kanonik dan muatan silang kanonik. Variabel yang diuji terdiri dari 8 variabel independen dan 13 variabel dependen. Dengan metode ini, akan dicari korelasi antara pemberian ekstrak terhadap organ-organ tikus Sprangue Dawley. Hasil canonical correlation analysis menunjukkan bahwa terdapat dua korelasi kanonik yang signifikan. Jumlah keragaman pada fungsi pertama dijelaskan oleh indeks redundansi sebesar 62.17% sementara jumlah keragaman pada fungsi kedua sebesar 57.18%. Variabel yang memiliki hubungan yang paling erat pada variabel independen ad...

This paper attempts to investigate the impact of the profitability and liquidity on capital structure of insurance industry in Egypt as applied on a sample of (19) insurance firms represented in the Egyptian insurance industry over the period from 1999-2019. The capital structure is measured by debt ratio, and the financial performance is measured by (liquidity, return on equity, and retune on investment).The study results show that there are significant negative linear relationships between the independent variable in terms of return on equity (X1), return on investment (X3), and dependent variable for the capital structure (Y) at the level of significant less than (0.001); based on panel data analysis, the results show that Tau-statistic, and z-statistic, are at a significant level less than (0.05).The statistical conclusion is the null significant relationship between the capital structure and liquidity, while there is a significant relationship between the capital structure, ret...

This article makes a bridge between the theory of optimal auditing and the scoring methodology in an asymmetric information setting. Our application is meant for insurance claims fraud, but it can be applied to many other activities that use the scoring approach. Fraud signals are classified based on the degree to which they reveal an increasing probability of fraud. We show that the optimal auditing strategy takes the form of a “red flags strategy,” which consists in referring claims to a special investigative unit (SIU) when certain fraud indicators are observed. The auditing policy acts as a deterrence device, and we explain why it requires the commitment of the insurer and how it should affect the incentives of SIU staffs. The characterization of the optimal auditing strategy is robust to some degree of signal manipulation by defrauders as well as to the imperfect information of defrauders about the audit frequency. The model is calibrated with data from a large European insuran...

When the insurance benefit of a last-survivor insurance product is payable at the moment of the last insured death, exploring continuous mortality models is essential to obtain the most appropriate premium and benefit reserve. In this study, Gamma-Gompertz mortality law was applied to Indonesian population mortality data at adulthood and old age stages to calculate the annual gross premium and gross benefit reserve of a whole life last survivor insurance product. The annual gross premium was computed using the actuarial equivalence principle. Results show that the older the policyholders purchase the product, the higher the annual gross premium they must pay. The gross benefit reserve needed to be set by the insurance company for the whole life last survivor insurance product was calculated using the prospective method. Its value grows for each valuation year until it approaches the insurance benefit amount.

Purpose – Based on the Normalized Difference Vegetation Index (NDVI)-based insurance developed by the Ministry of Agriculture, Livestock and Fisheries of Argentina (MAGyP) with technical assistance of the World Bank (WB), the purpose of this paper is to evaluate the out-of-sample performance of the NDVI-based insurance in Bahía Blanca Department of the south west of Buenos Aires (SWBA) Province in Argentina, by calculating the technical premium with the methodology developed by MAGyP-WB and NDVI information up to 2007, and analyzing the results that would have been obtained in 2008 and 2009. Design/methodology/approach – With the available NDVI information (1982-2009), the authors uses the out-of-sample method to analyze the rating of the contract and the reasonability of the premium payment through a comparison of the frequency and severity of payouts in the NDVI coverage with the losses suffered by droughts in SWBA. Specifically, it has been taken the data until 2006 to set the Tr...

Hadirnya layanan jasa dari lembaga pembiayaan bertujuan untuk menyediakan alternatif pembiayaan pembelian barang yang diinginkan, salah satunya pembelian mobil. Perusahaan pembia-yaan mengandalkan perbankan dan lembaga keuangan guna memenuhi kebutuhan sumber dana. Dalam melakukan penge-lolaan kreditnya, PT. X menghadapi berbagai masalah, salah satunya permasalahan nasabah gagal bayar (default). Salah satu langkah yang dapat dilakukan untuk meminimalisir terjadinya resiko tersebut adalah dengan melakukan pemodelan terhadap faktor penyebabnya ditinjau dari frekuensi pembayaran kredit oleh nasabah hingga mencapai batas toleransi yang diberikan oleh PT. X dimana frekuensi tersebut berdistribusi geometri. Pemodelan dilakukan dengan Bayesian Geometric Regression dan Bayesian Mixture Geometric Regression dimana kedua model menunjukkan variabel yang berpengaruh signifikan adalah status perkawinan, uang muka, lama angsuran, lama menempati tempat tinggal, dan besarnya premi asuransi. Model Ba...

This research study proposes the inclusion of randomness or an error term in the modified Lee–Carter model, which improves the traditional Lee–Carter model for modeling and forecasting mortality risk for years in the actuarial science field. While the modified Lee–Carter model points out some of its common shortcomings , it has no distributional assumption that has been placed on the error/disturbance term. Incorporating a Gaussian distributional assumption on the error term is proposed, and then, the deep learning technique is used to obtain the parameter estimates. It is a departure from the traditional singular value decomposition estimation technique for estimating the parameters in the model. Finally, the Bühlmann credibility approach is incorporated into the model to determine its forecasting precision compared to the classical Lee–Carter model before applied in actuarial valuations.

The paper applies the methodologies proposed by Basel Committee on Banking Supervision for assessing the capital requirements in the context of operational risk to a Romanian commercial bank. The basic indicator, standard and internal measurement ...

Actuaries model insurance claim amounts using heavy tailed probability distributions. They routinely need to evaluate quantities related to these distributions such as quantiles in the far right tail, moments or limited moments. Furthermore, actuaries often resort to simulation to solve otherwise untractable risk evaluation problems. The paper discusses our implementation of support functions for the Feller-Pareto distribution for the R package actuar. The Feller-Pareto defines a large family of heavy tailed distributions encompassing the transformed beta family and many variants of the Pareto distribution.

Although there are numerous studies on impact evaluation of overall health insurance, little is known on the impact of health insurance on health care utilization and out-of-pocket health care spending of children, especially in developing countries. This paper measures ...

Santiago Pulido, J.M. (2012). Cohesión social, capital social, conexiones sociales y repago en préstamos grupales: revisión de la evidencia reciente. Cuadernos de Economía, 31(58), 173-194. En los contratos de préstamo grupal, propios de las microfinanzas, usualmente se aduce que la cohesión social (o capital social) es un factor positivo para el repago, pero en diversos estudios, se ha constatado que la relación real entre Cohesión Social y tasa de repago no es claramente positiva. En el presente artículo, se hace una revisión crítica de la evidencia relevante sobre el particular. Se concluye que no hay consenso con respecto a la definición de cohesión social (muchas veces entendida como capital social o conexidad social), a las variables que la miden, y a si se habla de la cohesión social existente o emergente en el grupo. Por lo tanto, la cohesión social puede permitir o no la implementación de los contratos de préstamo grupal, y en caso de estar presente, puede evolucionar para sostenerlos o no. Palabras clave: cohesión social, capital social, contratos de préstamo grupal, repago en préstamos grupales, economía de redes sociales, economía experimental.

Tis research study proposes the inclusion of randomness or an error term in the modifed Lee-Carter model, which improves the traditional Lee-Carter model for modeling and forecasting mortality risk for years in the actuarial science feld. While the modifed Lee-Carter model points out some of its common shortcomings , it has no distributional assumption that has been placed on the error/disturbance term. Incorporating a Gaussian distributional assumption on the error term is proposed, and then, the deep learning technique is used to obtain the parameter estimates. It is a departure from the traditional singular value decomposition estimation technique for estimating the parameters in the model. Finally, the Bühlmann credibility approach is incorporated into the model to determine its forecasting precision compared to the classical Lee-Carter model before being applied in actuarial valuations.

In the context of a bright economy towards we aim the insurances represent are activity branch a services department with a financial character and with many valences. Beyond of the essential role of these is that the protection of the properties and the persons too between the various risks, the insurances accomplish many socio-economic functions like as attending as an offeror on the loan capital’s market the achievement of investment by resources or on the value document’s market, the creation of P.I.B. and the creation of jobs. The specialized bearers of risk are presented in any national economy in nowadays and they always take over them the risks which threaten the physical persons and the juridical persons, offering them a high level of certainty in change of the insurance’s prices. Consequently these specialized societies which accomplish the insurant role just unload of their contact partners which are the insurants by material consequences of the risks which threaten them....

Santiago Pulido, J.M. (2012). Cohesión social, capital social, conexiones sociales y repago en préstamos grupales: revisión de la evidencia reciente. Cuadernos de Economía, 31(58), 173-194. En los contratos de préstamo grupal, propios de las microfinanzas, usualmente se aduce que la cohesión social (o capital social) es un factor positivo para el repago, pero en diversos estudios, se ha constatado que la relación real entre Cohesión Social y tasa de repago no es claramente positiva. En el presente artículo, se hace una revisión crítica de la evidencia relevante sobre el particular. Se concluye que no hay consenso con respecto a la definición de cohesión social (muchas veces entendida como capital social o conexidad social), a las variables que la miden, y a si se habla de la cohesión social existente o emergente en el grupo. Por lo tanto, la cohesión social puede permitir o no la implementación de los contratos de préstamo grupal, y en caso de estar presente, puede evolucionar para sostenerlos o no. Palabras clave: cohesión social, capital social, contratos de préstamo grupal, repago en préstamos grupales, economía de redes sociales, economía experimental.

In the context of a bright economy towards we aim the insurances represent are activity branch a services department with a financial character and with many valences. Beyond of the essential role of these is that the protection of the properties and the persons too between the various risks, the insurances accomplish many socio-economic functions like as attending as an offeror on the loan capital’s market the achievement of investment by resources or on the value document’s market, the creation of P.I.B. and the creation of jobs. The specialized bearers of risk are presented in any national economy in nowadays and they always take over them the risks which threaten the physical persons and the juridical persons, offering them a high level of certainty in change of the insurance’s prices. Consequently these specialized societies which accomplish the insurant role just unload of their contact partners which are the insurants by material consequences of the risks which threaten them....

This study presents an estimation approach to non-life insurance claim counts relating to a specified time. The objective of this study is to estimate the parameters in non-life insurance claim counting process, including the homogeneous Poisson process (HPP) and the non-homogeneous Poisson process (NHPP) with a bell-shaped intensity. We use the estimating function, the zero mean martingale (ZMM) as a procedure of parameter estimation in the insurance claim counting process. Then, Λ (t), the compensator of N (t) is proposed for the number of claims in the time interval (0, t]. We present situations through a simulation study of both processes on the time interval (0, t]. Some examples of the situations in the simulation study are depicted by a sample path relating N (t) to its compensator Λ (t). In addition, an example of the claim counting process illustrates the result of the compensator estimate misspecification.

The aim of this study is to propose an estimation approach to non-life insurance claim counts related to the insurance claim counting process, including the non-homogeneous Poisson process (NHPP) with a bell-shaped intensity and a beta-shaped intensity. The estimating function, such as the zero mean martingale (ZMM), is used as a procedure for parameter estimation of the insurance claim counting process, and the parameters of model claim intensity are estimated by the Bayesian method. Then, , the compensator of   t    N t is proposed for the number of claims in a time interval     0,t. Given the process over the time interval 0,t , the situations are presented through a simulation study and some examples of these situations are also depicted by a sample path relating

The collapse of Colonial Life Insurance Company (Trinidad) Limited caused one of the most significant financial events in recent history in the Eastern Caribbean region. The significance of the groups collapse warranted the establishment of a commission to gather information on its root causes. There is however still uncertainty in much of the detail of CLICO's operations. This paper utilizes evidence presented in the national commission of enquiry of CLICO's collapse and other associated financial documents to discuss the reported financial activity of the group between 2003 and 2008. The analysis shows investments in unproductive asset expansion, declining income, bleeding cash positions over the period, and a business structure unlike a typical insurance company. The paper provides useful analysis for those in need of information regarding the failure of the region's most prominent firm.

One stochastic process that is often used to model real phenomena is the compound Poisson process (CPP). CPP is a process in which a component in the process of the events occurred is assumed to be a Poisson process with a certain intensity function (homogeneous or nonhomogeneous). Thinning process algorithm is usually used to generate events that occurred in the Poisson process, but not yet in CPP. This study aims to find out the algorithm to produce CPP which has the function of Poisson nonhomogeneous (NHPP) intensity, where in addition to knowing the process of events that occur, it also takes into account the extent of the consequences of these events. The value of the load caused by the Poisson process is assumed to be a family of i.i.d random variables and the variables are also independent of the Poisson process. The results of this study have obtained the thinning process algorithm and its generalizations for compound Poisson process having nonhomogeneous Poisson process (NHPP) intensity functions. This algorithm is the result of theoretical development and analysis of computational simulations that can be applied in various fields of science such as the analysis of reliability and risk models.

An insurance system is a mechanism for reducing the adverse financial impact of random events that prevents the fulfillment of reasonable expectations, i.e. Insurance is designed to protect against serious financial reversals that may result from random events intruding on the plans of individuals. The Life Insurance Company calculates the policy price with the intent to recover claims to be paid and administrative costs and to make a profit. The cost of insurance is determined using the Mortality Table calculated by Actuaries. The insurance companies receive premiums from the policy owner and invest them to create a pool of money from which to pay claims and finance the insurance company’s operations. Rates charged for life insurance increase with the insured’s age because statistically people are more likely to die as they get older. In this paper, we have discussed different types of insurance policies including expenses and its impacts on lives. We also discussed the annual prem...

This paper investigates whether gubernatorial elections affect state governments' accounting choices. We identify two accounts, the compensated absence liability account and the unfunded pension liability account, which provide incumbent gubernatorial candidates with flexibility for manipulation. We find that in an election year, the liability associated with compensated absences and unfunded pension liabilities are both systematically lower. We also find that the variation in these employment related liabilities is correlated with proxies for the incumbent's incentives and ability to manipulate their accounting reports. Jointly these results suggest that state governments manipulate accounting numbers to present a healthier financial picture in an election year.

Randomisation tests (R-tests) are regularly proposed as an alternative method of hypothesis testing when assumptions of classical statistical methods are violated in data analysis. In this paper, the robustness in terms of the type-I-error and the power of the R-test were evaluated and compared with that of the F-test in the analysis of a single factor repeated measures design. The study took into account normal and non-normal data (skewed: exponential, lognormal, Chi-squared, and Weibull distributions), the presence and lack of outliers, and a situation in which the sphericity assumption was met or not under varied sample sizes and number of treatments. The Monte Carlo approach was used in the simulation study. The results showed that when the data were normal, the R-test was approximately as sensitive and robust as the F-test, while being more sensitive than the F-test when data had skewed distributions. The R-test was more sensitive and robust than the F-test in the presence of a...

The insurance program has developed quite rapidly and the products that are displayed are only very attractive from protection products to protection and investment products known as unit link insurance. In general, unit-linked insurance products are offered with a death benefit for one person or single life. This study discusses unit link insurance with death benefits for two people or living together using profit testing calculations with a stochastic approach. This study aims to calculate the company's expectations of death benefits, profits and profits from unit link insurance for joint life using a stochastic approach. In this study, the ages of the participants of this unit link insurance are 35, 45, and 55. Premium payments of Rp4.200,000.00 are made annually for 5 years and are covered until the age of 75 years. In the research, it is expected that the profit and death benefit using the stochastic approach are as follows: if the insured ages are 35, 45, and 55 years old,...

Randomisation tests (R-tests) are regularly proposed as an alternative method of hypothesis testing when assumptions of classical statistical methods are violated in data analysis. In this paper, the robustness in terms of the type-I-error and the power of the R-test were evaluated and compared with that of the F-test in the analysis of a single factor repeated measures design. The study took into account normal and non-normal data (skewed: exponential, lognormal, Chi-squared, and Weibull distributions), the presence and lack of outliers, and a situation in which the sphericity assumption was met or not under varied sample sizes and number of treatments. The Monte Carlo approach was used in the simulation study. The results showed that when the data were normal, the R-test was approximately as sensitive and robust as the F-test, while being more sensitive than the F-test when data had skewed distributions. The R-test was more sensitive and robust than the F-test in the presence of a...