Analisis Polisi Luput Pelan Takaful Keluarga

Rubayah Yaakob; Mohd Hafizuddin Syah Baangan Abdullah; Norasykeen Mohd Baharom

doi:10.33102/jmifr.v15i1.103

Authors

Rubayah Yaakob Fakulti Ekonomi dan Pengurusan, Universiti Kebangsaan Malaysia, 43600 UKM, Bangi Selangor, Malaysia
Mohd Hafizuddin Syah Baangan Abdullah Fakulti Ekonomi dan Pengurusan, Universiti Kebangsaan Malaysia, 43600 UKM, Bangi Selangor, Malaysia
Norasykeen Mohd Baharom Fakulti Ekonomi dan Pengurusan, Universiti Kebangsaan Malaysia, 43600 UKM, Bangi Selangor, Malaysia

DOI:

https://doi.org/10.33102/jmifr.v15i1.103

Keywords:

Lapse, Family’s takaful, Insurance, Logit, Regression

Abstract

This study aims to analyze the determinants of policy lapse of family’s takaful in Malaysia by examining the demographic characteristics of policyholders and the
family takaful policy itself. The policy could lapse due to several reasons such as failing to make payment within the prescribed period, converting to a better policy, financial pressure and voluntary surrender. The policy lapse has a huge impact on stakeholders such as takaful operators, customers and policy makers. The impact of policy lapse includes losses to firms, adverse selection, liquidity and contribution increament. The results of the logistic regression analysis show that the sum insured, payment methods and gender have a negative impact on policy lapse. Wheares age, marital status and the insured individual have no effect on policy lapse. The findings assist stakeholders such as takaful operators and regulators to develop appropriate strategies to achieve their goals and support the development of the takaful industry in Malaysia.

Downloads

Download data is not yet available.

References

Bank Negara Malaysia. (2017). Monthly statistical bulletin January 2017. Retrieved from : http://www.bnm.gov.my/index.php?ch=en_publication&pg=en_msb&ac=239&lang=en.

Bauer, D., Gao, J., Moenig, T., Ulm, E.R. & Zhu, Nan. (2017). Policyholder exercise behavior in life insurance: The state of affairs. North American Actuarial Journal, 21(4), 485-501.

Black, K. J. & Skipper, H. J. (2000). Life and health insurance. (13th Ed). New Jersey, NJ: Prentice-Hall, Inc.

Carson, J. M. & Forster, M.D. (2000). The nature and causes of variation in insurance Policy yields: Whole life and universal life. Journal of Insurance Issues, 23(1), 30-47.

Eling, M. & Kiesenbauer, D. (2013). What policy features determine life insurance lapse?: An analysis of the German market. The Journal of Risk and Insurance, 81(2), 241–269.

Fier, S. G. & Liebenberg, A. P. (2013). Life insurance lapse behavior. North American Actuarial Journal, 17(2), 153-167.

Gatzert, N. G., Hoermann & Schmeiser. (2009). The impact of the secondary market on life insurers’ surrender profits. Journal of Risk and Insurance, 76(4), 887-908.

Grosen, A. & Jorgensen, P. L. (2000) Fair valuation of life insurance liabilities: The impact of interest guarantees, surrender options, and bonus policies. Insurance: Mathematics and Economics, 26, 37–57.

Hair, J. F., Black, W. C., Babin, B. J. & Anderson, R. E. (2010). Multivariate data analysis: A global perspective. (7th Ed). New Jersey, NJ: Pearson Educational Inc.

Kim, C. (2005). Modeling surrender and lapse rates with economic variables. North American Actuarial Journal, 9(4), 56-70.

Kleinbaum, D. G. & Klein, M. (2010). Logistic regression: A self-learning text. New York, NY: Springer-Verlag.

Kuo, W., Tsai, C. & Chen, W. K. (2003) An empirical study on the lapse rate: The co-integration approach. Journal of Risk and Insurance, 70(3), 489-508.

Liebenberg, A. P., Carson, J. M. & Hoyt, R. E. (2010). The demand for life insurance policy loans. The Journal of Risk and Insurance, 77(3), 651-666.

Linton, M. A. (1932). Panics and cash values. Transactions of the Actuarial Society, 33, 365-394.

Long, J. S. (1997). Regression models for categorical and limited dependent variables: Advanced quantitative techniques in the social sciences. California, US: SAGE Publications Inc.

Mall, S. & Sahoo, S. (2015). Determinants of lapsation of life insurance policies: An empirical investigation for the Indian market. International Journal of Financial Services Management, 8(2), 133-147.

Menard, S. (2002). Applied logistic regression analysis. (2nd Ed). Thousand Oaks, CA.: Sage Publication.

Milhaud, X., Maume-Deschamps, V. & Loisel, S. (2011). Surrender triggers in life insurance: What main features affect the surrender behavior in a classical economic context? Bulletin Francais d’Actuariat, 11(22), 5-48.

Nolte, S. & Schneider, J.C. (2017). Don’t lapse into temptation: A behavioral explanation for policy surrender. Journal of Banking and Finance, 79(C), 12-27.

Outreville, J. F. (1990). Whole-life insurance lapse rates and the emergency fund hypothesis. Insurance: Mathematics and Economics, 9(4), 249–255.

Peng, C. Y. J., Lee, K. L. & Ingersoll, G. M. (2002). An introduction to logistic regression analysis and reporting. The Journal of Educational Research, 96(1), 3-14.

Russell, D. T., Fier, S. G., Carson, J. M. & Dumm, R. E. (2013). An empirical analysis of life insurance policy surrender activity. Journal of Insurance Issues, 36(1), 35–57.

Sun, P. & Mo, X. (2011). Variable annuity dynamic lapse study: A data mining approach. Millman Research Report, June 2011.