Estimation model of life insurance claims risk for cancer patients by using Bayesian method

This paper discussed the estimation model of the risk of life insurance claims for cancer patients using Bayesian method. To estimate the risk of the claim, the insurance participant data is grouped into two: the number of policies issued and the number of claims incurred. Model estimation is done u...

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Bibliographic Details
Published in:IOP conference series. Materials Science and Engineering 2017-01, Vol.166 (1), p.12022
Main Authors: Sukono, Suyudi, M., Islamiyati, F., Supian, S.
Format: Article
Language:English
Subjects:
Age
Bayesian analysis
Cancer
Insurance
Insurance claims
Life insurance
Risk
Risk premiums
Citations: Items that this one cites
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Summary:This paper discussed the estimation model of the risk of life insurance claims for cancer patients using Bayesian method. To estimate the risk of the claim, the insurance participant data is grouped into two: the number of policies issued and the number of claims incurred. Model estimation is done using a Bayesian approach method. Further, the estimator model was used to estimate the risk value of life insurance claims each age group for each sex. The estimation results indicate that a large risk premium for insured males aged less than 30 years is 0.85; for ages 30 to 40 years is 3:58; for ages 41 to 50 years is 1.71; for ages 51 to 60 years is 2.96; and for those aged over 60 years is 7.82. Meanwhile, for insured women aged less than 30 years was 0:56; for ages 30 to 40 years is 3:21; for ages 41 to 50 years is 0.65; for ages 51 to 60 years is 3:12; and for those aged over 60 years is 9.99. This study is useful in determining the risk premium in homogeneous groups based on gender and age.
ISSN:1757-8981
1757-899X
DOI:10.1088/1757-899X/166/1/012022