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...

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Main Authors:	Hendon Redzuan, Rubayah Yakob, Zaidi Isa
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2016
Online Access:	http://journalarticle.ukm.my/10816/ http://journalarticle.ukm.my/10816/ http://journalarticle.ukm.my/10816/1/9401-48418-1-PB.pdf

id	ukm-10816
recordtype	eprints
spelling	ukm-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
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
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.
format	Article
author	Hendon Redzuan, Rubayah Yakob, Zaidi Isa,
spellingShingle	Hendon Redzuan, Rubayah Yakob, Zaidi Isa, Underinsurance in Malaysia: the application of the Monte Carlo simulation
author_facet	Hendon Redzuan, Rubayah Yakob, Zaidi Isa,
author_sort	Hendon Redzuan,
title	Underinsurance in Malaysia: the application of the Monte Carlo simulation
title_short	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_sort	underinsurance in malaysia: the application of the monte carlo simulation
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2016
url	http://journalarticle.ukm.my/10816/ http://journalarticle.ukm.my/10816/ http://journalarticle.ukm.my/10816/1/9401-48418-1-PB.pdf
first_indexed	2023-09-18T19:58:30Z
last_indexed	2023-09-18T19:58:30Z
_version_	1777406690579185664

Underinsurance in Malaysia: the application of the Monte Carlo simulation

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