Underinsurance in Malaysia: the application of the Monte Carlo simulation
This study seeks to estimate the extent of underinsurance among Malaysian families in 2012. Underinsurance is quantified by the extent to which the citizens in a country are inadequately covered by the life insurance protection. To measure underinsurance, we use the concept of the life insurance pro...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2016
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| Online Access: | http://journalarticle.ukm.my/10816/1/9401-48418-1-PB.pdf |
| _version_ | 1796931314960564224 |
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| author | Hendon Redzuan, Rubayah Yakob, Zaidi Isa, |
| author_facet | Hendon Redzuan, Rubayah Yakob, Zaidi Isa, |
| author_sort | Hendon Redzuan, |
| collection | UKM |
| description | This study seeks to estimate the extent of underinsurance among Malaysian families in 2012. Underinsurance is quantified by the extent to which the citizens in a country are inadequately covered by the life insurance protection. To measure underinsurance, we use the concept of the life insurance protection gap as proposed by Swiss Re (2004). The mortality protection gap is the difference between the resources needed and the resources available. The resources needed refer to the resources the surviving dependents require for income replacement, debt repayment and other major expenses. The resources available refer to those resources actually available to the dependents from financial assets, social security and life insurance coverage. The data collected are simulated using the Monte Carlo simulation process. Statistical analysis of the results of the simulation runs indicates that, on average, the extent of underinsurance in Malaysia is about RM500,000 per household. |
| first_indexed | 2024-03-06T04:16:10Z |
| format | Article |
| id | ukm.eprints-10816 |
| institution | Universiti Kebangsaan Malaysia |
| language | English |
| last_indexed | 2024-03-06T04:16:10Z |
| publishDate | 2016 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| record_format | dspace |
| spelling | ukm.eprints-108162017-10-11T07:35:24Z http://journalarticle.ukm.my/10816/ Underinsurance in Malaysia: the application of the Monte Carlo simulation Hendon Redzuan, Rubayah Yakob, Zaidi Isa, This study seeks to estimate the extent of underinsurance among Malaysian families in 2012. Underinsurance is quantified by the extent to which the citizens in a country are inadequately covered by the life insurance protection. To measure underinsurance, we use the concept of the life insurance protection gap as proposed by Swiss Re (2004). The mortality protection gap is the difference between the resources needed and the resources available. The resources needed refer to the resources the surviving dependents require for income replacement, debt repayment and other major expenses. The resources available refer to those resources actually available to the dependents from financial assets, social security and life insurance coverage. The data collected are simulated using the Monte Carlo simulation process. Statistical analysis of the results of the simulation runs indicates that, on average, the extent of underinsurance in Malaysia is about RM500,000 per household. Penerbit Universiti Kebangsaan Malaysia 2016 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/10816/1/9401-48418-1-PB.pdf Hendon Redzuan, and Rubayah Yakob, and Zaidi Isa, (2016) Underinsurance in Malaysia: the application of the Monte Carlo simulation. Jurnal Pengurusan, 47 . pp. 131-141. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/issue/view/856 |
| spellingShingle | Hendon Redzuan, Rubayah Yakob, Zaidi Isa, Underinsurance in Malaysia: the application of the Monte Carlo simulation |
| title | Underinsurance in Malaysia: the application of the Monte Carlo simulation |
| title_full | Underinsurance in Malaysia: the application of the Monte Carlo simulation |
| title_fullStr | Underinsurance in Malaysia: the application of the Monte Carlo simulation |
| title_full_unstemmed | Underinsurance in Malaysia: the application of the Monte Carlo simulation |
| title_short | Underinsurance in Malaysia: the application of the Monte Carlo simulation |
| title_sort | underinsurance in malaysia the application of the monte carlo simulation |
| url | http://journalarticle.ukm.my/10816/1/9401-48418-1-PB.pdf |
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