Application of Black Scholes Method in Determining Agricultural Insurance Premium Based On Climate Index Using Historical Burn Analysis Method

Climate index insurance is an insurance that provides reimbursement for losses due to decreased harvest rates or crop failures caused by weather. The use of Historical Burn Analysis (HBA) method in determining climate index based on rainfall resulted in a concept of the agricultural insurance payment in Pasuruan Regency. The application of The Black Scholes method in determining agricultural insurance premiums is obtained when rainfall more than 17 mm the premium is Rp 221,234. If the rainfall are 13 mm ≥ RR < 17 mm, the nominal premium paid by farmers to the insurance party is Rp 147,489. Respondents in the study were farmers who owned rice fields. Instrument quality testing (questionnaire) using validity test and reliability test using the help of SPSS statistical software. It can be concluded that the questionnaire is valid and reliable. Based on the results of the questionnaire, farmers considered that the nominal agricultural insurance premiums are in accordance with farmers' income.

Spatial pattern of tuberculosis (TB) and related socio-environmental factors in South Korea, 2008-2016

Tuberculosis (TB) incidence and corresponding mortality rates in S. Korea are unusual and unique compared to other economically developed countries. Korea has the highest TB incidence rate in Organization for Economic Co-operation and Development (OECD) countries. TB is known as a disease reflecting socio-economic and environmental conditions of a society. Besides, TB is an infectious disease spread through the air, naturally forming spatial dependence of its incidence. This study investigates TB incidences in Korea in socio-economic and environmental perspectives. Eigenvector spatial filtering applied accounts for spatial autocorrelation in the TB incidence, and Getis-Ord Gi* statistic tracks the changes of TB clusters at given time. The results show that population composition ratio, population growth rate, health insurance payment, and public health variables are significant throughout the study period. Environmental variables make minor effects on TB incidence. This study argues that unique demographic features of Korea are a potential threat to TB control in the future.

Optimum insurance contract of flood damage index insurance for rice farmers in Myanmar

Climate change is an underlying cause of many extreme events such as enormous cyclones and erratic torrential rains. These phenomena threaten farmers in coastal regions of Myanmar. Self-insurance through means such as crop diversification is insufficient for sustainable farm management. Weather index insurance (WII) is receiving much attention because of its low management costs. An optimum WII contract for flood damage using rainfall as the index has been proposed for rice farmers in coastal regions. According to the model, an insurance payment demand function is derived by solving the expected utility maximization problem. The utility function of the contract is specified as constant relative risk aversion type. The production function is specified as Cobb–Douglas type. By substituting real average data of rice production of farmers into this function, the optimum insurance payment and premium are obtained. Changes in insurance compensation by payments according to an increase in the price of rice, rainfall, and degree of risk aversion are investigated. Results suggest that if an average farmer pays around 41.5 US dollars per year, then farm management will be optimally stabilized under the flood risk.

Analysis of the Effect of DRG Medical Insurance Payment on the Performance of Hospital Service in Hunan Province

Background: Performance evaluation is an important means to promote the hospital's medical ability and management ability. Therefore, the aim of this study was to explore the effect of DRG payment mode on the performance of inpatient services in large tertiary hospitals. Methods: Based on the relevant report data of DRG pilot hospital and control hospital from 2015 to 2020, CN-DRG was used as grouping method, and case mix index (CMI), DRG group number, cost consumption index, time consumption index, low-risk group mortality and other indicators were used to analyze the impact of DRG on hospital inpatient service performance from the aspects of medical service ability, medical service efficiency, medical safety. Results: The average annual growth rate of DRG group was 4.07%, the average annual growth rate of CMI was 0.95%, the time consumption index and cost consumption index were lower than 1, and the mortality rate of low-risk group decreased by 27.56%. Conclusions: DRG medical insurance payment can improve the performance of inpatient service in the process of hospital management.

ROBUST ESTIMATION OF LOSS MODELS FOR LOGNORMAL INSURANCE PAYMENT SEVERITY DATA

Abstarct The primary objective of this scholarly work is to develop two estimation procedures – maximum likelihood estimator (MLE) and method of trimmed moments (MTM) – for the mean and variance of lognormal insurance payment severity data sets affected by different loss control mechanism, for example, truncation (due to deductibles), censoring (due to policy limits), and scaling (due to coinsurance proportions), in insurance and financial industries. Maximum likelihood estimating equations for both payment-per-payment and payment-per-loss data sets are derived which can be solved readily by any existing iterative numerical methods. The asymptotic distributions of those estimators are established via Fisher information matrices. Further, with a goal of balancing efficiency and robustness and to remove point masses at certain data points, we develop a dynamic MTM estimation procedures for lognormal claim severity models for the above-mentioned transformed data scenarios. The asymptotic distributional properties and the comparison with the corresponding MLEs of those MTM estimators are established along with extensive simulation studies. Purely for illustrative purpose, numerical examples for 1500 US indemnity losses are provided which illustrate the practical performance of the established results in this paper.

The ageing ‘care crisis’ in Japan: is there a role for robotics-based solutions?

Japan is facing a ‘care crisis’. There is an urgent need to ascertain the extent to which potential users are willing to use robotics-aided care before its roll-out as a formal policy. Based on our recent survey, we discuss home-care professionals’ real perceptions and their implications for the future development and implementation of home-care robots. While they showed some concerns about robotics-aided care, they perceived ‘physical support’, ‘communication’ and ‘monitoring’ functions positively. A small number of care professionals recommended assistive technologies listed in the insurance payment scheme. We conclude that both individual preferences and formal policy options are necessary for an effective implementation of robotics-aided care.

PP548 The Design Of Long-term Care Insurance Payment: Base On Pilot Practice In Jingmen

IntroductionWith the aging of population, miniaturization of family size and changes of diseases spectrum, the demand for long-term care of Chinese elderly is increasing, which is challenging the existing long-term care system. China is currently carrying out pilot work for a long-term care insurance system, and Jingmen is one of the pilot cities, however more detailed research on payment is needed. Therefore, this paper draws on case-mixed-adjusted prospective payment system to provide designs for long-term care insurance in pilot cities.MethodsAdopting a case analysis method, this paper focuses on system for payment of Skilled Nursing Facility under Part A of the Medicare program—Patient Driven Payment Model, and discusses the implementation plan of a long-term care insurance in Jingmen City from the perspectives of payment methods, payment grouping and payment standards.ResultsCurrently Jingmen adopts per-diem payment for long-term care insurance, so it is necessary to establish a payment based on population characteristics and demands. So, the patients should be classified into a group for each of the five case-mix adjusted components: physical therapy, occupational therapy, speech therapy, nursing and non-therapy ancillary. In addition, this payment model also includes a “variable per diem adjustment” to account for the changes in patient costs more accurately.ConclusionsThe theoretical system of a long-term care insurance payment method is developed, and a localization plan for case-mixed-adjusted prospective payment system for long-term care insurance is provided. Therefore, Jingmen long-term care insurance payment should adopt “case-mixed adjustment”, strengthening the relationship between individual clinical characteristics and payment.

Analysis of the cause of loss of PT. Asuransi Jiwasraya (Persero)

Research purposes – to analyse the causes of losses faced by PT. Asuransi Jiwasraya and review in more detail, what are the factors of the cause of the financial problems faced by Jiwasraya, so that the company has stood for 160 years With assets in the year 2017 of 45 trillion rupiah, a sudden loss of 13 trillion rupiah with a debt of 49 trillion rupiah in 2019.Design / Methodology / Approach – This research uses descriptive research method, which aims to explain a phenomenon or event systematically and as it is, this research was conducted to obtain information about the previous situation and the current situation to be analyzed so that the core of the problem that causes the research can be found. This study uses a case study model that occurred at PT. Asuransi Jiwasraya, which is experiencing financial problems due to mismanagement and misplacement of customers 'investment funds, has caused it to be unable to return investment funds and pay customers' investment interest.Finding – (1) Management's mistake in placing the customer's investment fund is the main cause of insurance payment to the customer. (2) JS Saving is a not unit link investment where the risk is entirely borne by the insurance company. The lure of a High Return JS Saving Plan is offered with a guaranteed return of 9 percent to 13 percent from 2013 to 2018 with a disbursement period every year. (3) Jiwasraya manipulates its financial statements so that they can look good to investors. (4) Management is too aggressive in investing to pursue the company's profit targets and target payment obligations to all customers who buy investment products.Research limitations – This research is limited to cases that occur in the insurance company Jiwasraya, with no comparison with other insurance companies or other investment companies.Originality/value – The authenticity of the analysis and observation to obtain valid and accountable data, the results are used to find the main cause of the losses that occur at the insurance company under study. Keywords: Jiwasraya Insurance; Stock Investment; Mismanagement