QUANTIFICATION OF EXTRA RISK IN LIFE INSURANCE USING THE METHOD OF THE PERCENTAGE OF THE NORMAL MORTALITY Cover Image

KVANTIFIKÁCIA EXTRA RIZIKA V ŽIVOTNOM POISTENÍ METÓDOU PERCENTA NORMÁLNEJ ÚMRTNOSTI
QUANTIFICATION OF EXTRA RISK IN LIFE INSURANCE USING THE METHOD OF THE PERCENTAGE OF THE NORMAL MORTALITY

Author(s): Ingrid Ondrejková Krčová, Kristína Majerníková
Subject(s): Business Economy / Management, Demography and human biology, Socio-Economic Research
Published by: Masarykova univerzita
Keywords: extra risk; extra premium; percentage of normal mortality; actuarial calculations; endowment assurance;
Summary/Abstract: The paper is devoted to describe product pricing of life insurance Company for the nonstandard risk. One of the methods of quantification of extra risk is percentage of the normal mortality, where we can use two different approaches. First approach is based on the change of the probabilities so that it needs recalculation. Second approach is based on approximation so that it is enough to use the standard mortality tables.