The effects of irregular interest rates on net level terminal reserves for a 20-year endowment policy
Date
3-1989
Degree
Bachelor of Science in Agriculture
College
College of Arts and Sciences (CAS)
Adviser/Committee Chair
Rhodora O. dela Peña
Abstract
The reserves of the company is the most sensitive part of an insurance business. Incorrect assumption of interest and mortality affects the financial stability of the company.
This special problem tackled the effects of irregular interest rates applied in the computation of reserves. Commutation columns at different interest rates using the 1958 CSO Mortality Table were obtained. Net annual premiums and net level terminal reserves were computed using the three assumptions: 6% fixed rate, varying savings and market interest rates.
Results of the study showed that varying interest rates contradicts some theories of reserves and affects the profitability and solvency of the company. Irregular interest rates underestimate/overestimate the value of reserves.
Language
English
Location
UPLB Main Library Special Collections Section (USCS)
Call Number
Thesis
Recommended Citation
Adriano, Marivic B., "The effects of irregular interest rates on net level terminal reserves for a 20-year endowment policy" (1989). Undergraduate Theses. 9612.
https://www.ukdr.uplb.edu.ph/etd-undergrad/9612
Document Type
Thesis