Article Per Year (5 Year)
p-Index From 2021 - 2026
0.23
P-Index
This Author published in this journals
All Journal Indonesian Journal of Mathematics and Applications
Nugroho, Dzaki Ferlian
Unknown Affiliation
Computer Science & IT Education Mathematics Other

Published : 1 Documents Claim Missing Document
Claim Missing Document
Check
Articles

Found 1 Documents
Search

 1 
Comparison of Clayton Copula and Gumbel Copula Methods for Calculating Gross Premium and Profit Testing in Joint Life Insurance Products Nugroho, Dzaki Ferlian; Yusuf, Feby Indriana; Mahanani, Dwi Mifta
Indonesian Journal of Mathematics and Applications Vol. 4 No. 1 (2026): Indonesian Journal of Mathematics and Applications
Publisher : Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.ijma.2026.004.01.5

Abstract

Public trust in the Indonesian life insurance industry has become a significant concern following several instances of default. Consequently, assessing the financial viability of insurance products is essential, particularly through the application of profit testing to ensure that projected revenues are sufficient to meet future obligations. The effectiveness of profit testing depends largely on the characteristics of the product under evaluation. While risk and cash flow analyses for single-life products are relatively straightforward, multi-life products, such as joint life insurance policies, involve greater complexity due to the combined risks of multiple insured individuals who may exhibit interdependence. The assumption of mortality independence often fails to reflect real-world conditions influenced by shared environmental, lifestyle, and socioeconomic factors; therefore, lifetime dependence should be explicitly incorporated into joint life insurance modeling. This study models lifetime dependence using Archimedean copulas, specifically the Clayton and Gumbel copulas, and applies the Gross Premium Valuation method to determine gross premiums, complemented by profit testing to evaluate financial feasibility. Simulation results for a couple aged 35 and 30 with a 15-year policy term indicate that the Clayton copula generates lower premium levels and higher profit margins compared to the Gumbel copula. 
Co-Authors Dwi Mifta Mahanani, Dwi Mifta Feby Indriana Yusuf