Actuarial Model for Pricing Disability Insurance Policy
Actuarial Model for Pricing Disability Insurance Policy

Author(s): Ján Gogola, Lucie Kopecká
Subject(s): Business Economy / Management, Methodology and research technology, Accounting - Business Administration
Published by: Masarykova univerzita nakladatelství
Keywords: disability insurance; Markov process; semi-Markov process; splitting of states;
Summary/Abstract: The main objective of our contribution is to apply stochastic processes for disability policy that gives annuity benefit in case of temporary or permanent disability. We apply durational effect to the disable state, by splitting it into several states. Using the data supplied by the Continuous Mortality Investigation (CMI) we calculate the single and annual premiums for that policy.

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