Comparison of Zillmer and Premium Sufficiency Reserve Method using the Vasicek Stochastic Interest Rate Model

An accurate calculation of premium reserves will ensure that the insurance company can pay claims. Premium are funds collected by companies which difference between sum insured and value payments during period prepared for claim payments. There several methods calculating reserves, but focus this study Zillmer method Sufficiency method, extensions prospective method. This aims to compare two using Vasicek model determine stochastic interest rate. Then Ordinary Least Square is used estimate rate parameter. In comparing reserve methods, builds a simulation reference male female insureds Bank Indonesia data 2017-2021 Indonesian Mortality Table IV from 2019. The results indicate premiums calculations yield less than Adequacy both insureds.