<![CDATA[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. ]]>
Copyrights © 2026
