Document Type : Original Research Paper

Authors

• Gh. Mahdavi
• J. Alipour

Department of Actuarial Sciences, School of Eco Insurance, Allameh Tabatabai University, Tehran, Iran

Abstract

One of the factors of insufficient demand for life insurance in the country is the presence of stable inflation, which reduces the purchasing power of life insurance capital. To investigate this issue, 204 questionnaires were distributed among two equal groups of life insurance buyers and those who have not bought life insurance yet. Statistical tests show that with 99% probability, the hypothesis that the most important factor in the lack of demand for life insurance is inflation is confirmed.




In order to eliminate the negative effect of inflation on the demand for life insurance, the solution of providing an optimal monetary basket instead of the Rial amount in the calculation of the insurance capital at the time of death was investigated. To obtain the optimal currency basket, the genetic algorithm method was used, and the optimal weights for the currency units of the basket were Iranian Rial (0.008), Norwegian Krone (0.066), American Dollar (0.522) and Euro (0.404). ) was calculated.

Keywords

• Universal Life Insurance Policy
• Inflation
• Currency Basket
• Genetic Algorithm
• Optimization