Abstract:
Premium calculation is one of the important aspects to insurance companies.
Careless determination of the premium price can cause the insurance company to
fail to bear the risk that the company has. There are several ways to determine
premium payments. In this research the premium calculation will be computed
using Gompertz mortality assumptions which will be applied to the annual premium
calculation of whole life and term life single life insurance of man and woman. The
benefit assumed, interest rate, Insurer age, Gompertz parameter and several
actuarial notations such as life annuity-due and net single premium is needed in the
premium calculation using Gompertz mortality assumptions. This research uses the
data of Indonesian Mortality table (TMI IV) and the Linear Least Squares (LLS)
method to find the Gompertz parameter to find the survival probabilities. Based on
the calculation performed in this research, the value of the premium using Gompertz
assumptions is influenced by parameters on the Gompertz assumptions, the interest
rate used, and the Insured age. Using the LLS method the parameter found for
woman is 0.00006592 for B and 1.083 for c and the parameter for man is
0.00009501 for B and 1.082795 for c. Moreover, the value of the premium based
on Gompertz mortality assumptions using Linear Least Squares (LLS) method with
the same age of 30 years old for man is higher than the value of the premium for
woman, with the value of IDR 6,020,436.98 for man and IDR 4,808,984.04 for
woman using whole life insurance and the value of IDR 2,342,104.10 for man and
IDR 1,644,897.21 for woman using term life insurance.
