Estimated value of insurance premium due to Citarum River flood by using Bayesian method

Aisah, Isah; Tampubolon, Y R H; Napitupulu, Herlina; Supian, Sudradjat; Subiyanto, .; Sidi, Pramono

doi:10.1088/1757-899x/332/1/012047

Cited by 5 publications

(6 citation statements)

References 12 publications

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“…The parametric method assumes that the crop follows a certain distribution such as normal, beta or gamma. The opportunity for crop losses is the area under the opportunity density function curve, when the yield is smaller than the guaranteed yield [31].…”

Section:   X Hmentioning

confidence: 99%

Model of Rice Farm Insurance to Reduce Losses Due to Harvest Failure

2019

ijrte

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The rice farm insurance is one of micro insurance, which is intended for paddy fields. Its use is to reduce or minimize the losses suffered by farmers due to crop failure. In this article various things are related to rice farming insurance and specifically highlight rice farming insurance in Indonesia from the actuarial side. There are several actuarial methods that can be used to determine the amount of rice farming insurance premiums. Calculation of premiums is based on expectations of losses and losses of extreme events. The premium calculation used is: pure premium method, and method of level of coverage. Based on the results of the discussion, it shows that the actuarial fair premium determined in the range of IDR 179,000 to IDR 268,000. Thus, the official premium of rice farming insurance is IDR 180,000, is the minimum premium for agricultural insurance programs in Indonesia.

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Section:   X Hmentioning

confidence: 99%

Model of Rice Farm Insurance to Reduce Losses Due to Harvest Failure

2019

ijrte

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“…Before calculating CAT bond prices, first make a probability interval that is exceeded for the GEV distribution using equation (1) and the data analyzed, the probability intervals generated are presented in Table 2.…”

Section: Calculating the Price Of Catastrophe Bondsmentioning

confidence: 99%

“…However, the compensation still cannot cover the overall loss of natural disasters. Therefore, according to Sukono et al [1], insurance can be a solution to minimize losses due to natural disasters. In insurance companies, disaster risk is delegated by buying reinsurance contract.…”

Section: Introductionmentioning

confidence: 99%

Estimation of the Catastrophe Bonds Price by using Risk Neutral Measurement

Sukono*,

Susanti,

Lesmana

et al. 2019

IJRTE

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Catastrophe Bonds (CAT bonds) or disaster bonds are securities products that work by transferring risk in the form of natural disaster losses to the capital market, so that it is necessary to estimate CAT bond prices. This study intends to discuss the model to determine the price of CAT bonds in arbitrage-free scope based on the approach of risk neutral measurement. The data used is extreme data in the form of losses due to natural disasters in the range of 2000-2019. There are several stages carried out in this study. The first step is to calculate descriptive data statistics. Then, estimating the data parameters using the Maximum Likelihood Estimation (MLE) method assuming the data distributed Generalized Extreme Value (GEV). Next, determine the price of CAT bond using the formula of risk neutral measurement. From the results of the analysis carried out, the CAT bond price is USD98.63, and there is the effect of risk neutral measurement on the price of CAT bonds paid by investors.

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“…According to Prabowo et al [22], the determination of the amount of the premium is also carried out using the risk theory. Sukono et al [25] use the Bayesian method to estimate the premium for flood insurance. The calculation of flood insurance premiums can also be done using the Fuzzy Inference of Sugeno Method [26].…”

Section: Introductionmentioning

confidence: 99%

Determination of the Amount of Premium and Indemnity in Shallot Farming Insurance

Prabowo¹,

Mamat²

2023

ujar

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Insurancecontract, including agricultural/crop insurance, involves premium payment by the insured and compensation payment by the insurer on the claim filed by the insured. The agricultural insurance premium in this research was calculated using Cash-or-nothing put option equation, while the amount of compensation was determined using the historical burn analysis (HBA) method, at different percentiles. This research was conducted using secondary data in the form of four-year daily rainfall, shallot production volume, and risk-free interest rate from Bank Indonesia. Primary data needed in this research were the cost for shallot planting per hectare per planting season of IDR 46,110,735. The research results with a percentile of 5% generate a premium of IDR 8,246,571. The rainfall calculation results in a window period from March to June with a window index in the form of total average dasarian (ten-day) adjusted rainfall in ascending order at an interval of 36.08 -49.33 mm. Based on HBA method, full compensation of planting cost is given to farmers if rainfall is lower than or equal to the exit value of 36.08 mm in each percentile used. Meanwhile, partial compensation differs depending on percentile value. When percentile of 5% is used, then the compensation will be higher than the premium if rainfall is at an interval of 36.080 -36.500 mm and lower if rainfall is at an interval of 36.500 -36.743 mm. If rainfall is above 36.743 mm, there is no indemnity to be paid. At percentile 5%, rainfall 36.743 mm is the Trigger Value.

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Estimated value of insurance premium due to Citarum River flood by using Bayesian method

Cited by 5 publications

References 12 publications

Model of Rice Farm Insurance to Reduce Losses Due to Harvest Failure

Model of Rice Farm Insurance to Reduce Losses Due to Harvest Failure

Estimation of the Catastrophe Bonds Price by using Risk Neutral Measurement

Determination of the Amount of Premium and Indemnity in Shallot Farming Insurance

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