Abstract:
Based on the results of this study which is shown in previous chapters, it
can be concluded that:
1. Calculation of premium reserves for endowment life insurance using the Full
Preliminary Term method and the Commissioner's method are carried out in
the same way, namely calculating life annuity-due, net single premium, and net
annual premium, from which premium reserves can be obtained.
2. As the Commissioner's method is an extension of the Full Preliminary Term
method, what is modified is the net annual premium of the Full Preliminary
Term. The difference between the two methods lies in the premium paid in the
first period of the insurance contract. The Full Preliminary Term method will
produce smaller premium reserves because the first year's premium reserves
are considered zero to cover initial costs and avoid negative premium reserves.
Both methods will result in the same compensation at the end of the period
which means that the company will be able to return the full compensation to
the policyholder.
3. The application program for calculating premium reserves using the Full
Preliminary Term method and the Commissioner's method using Microsoft
Excel and Excel Visual Basic for Application (VBA) constructed in this study
is proven to be a free tool that can be useful for actuaries or insurance
professionals in speeding up and producing accurate calculations without
having to buy an automation application which is sometimes considered
expensive and its use is more complex.
