BAREKENG: Jurnal Ilmu Matematika dan Terapan
Vol 16 No 3 (2022): BAREKENG: Journal of Mathematics and Its Applications

CALCULATION OF CREDITED INTEREST RATE WITH INVESTMENT YEAR METHOD AND PORTFOLIO METHOD

Jevilia Aryento (Parahyangan Catholic University)
Felivia Kusnadi (Parahyangan Catholic University)
Dharma Lesmono (Parahyangan Catholic University)

Article Info

Publish Date
01 Sep 2022

Abstract

The rate of return on investment for unit-linked insurance products in Indonesia is still volatile and depends on the investment instruments performance. However, the net return on investment that is given to policyholders is projected at the beginning of the year and is used as a benchmark for choosing the right investment instrument, referred to as the credited interest rate. Interest rates movements affect the yield of the credited interest rate. Therefore, the credited interest rate calculation requires appropriate methods to reduce the risk of loss, which are the Investment Year Method and the Portfolio Method. Research shows that the Investment Year Method is more appropriate in unstable interest rate condition, whereas the Portfolio Method is better utilized in a stabilized environment. In addition, this research also shows the strategy to manage investment instruments with asset rollover to suit the fluctuating credited interest rate.

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Journal Info
BAREKENG: Jurnal Ilmu Matematika dan Terapan
Website

Abbrev

barekeng

Publisher

Universitas Pattimura

Subject

Computer Science & IT Control & Systems Engineering Economics, Econometrics & Finance Energy Engineering Mathematics Mechanical Engineering Physics Transportation

Description

BAREKENG: Jurnal ilmu Matematika dan Terapan is one of the scientific publication media, which publish the article related to the result of research or study in the field of Pure Mathematics and Applied Mathematics. Focus and scope of BAREKENG: Jurnal ilmu Matematika dan Terapan, as follows: - Pure ...