CALCULATION OF CREDITED INTEREST RATE WITH INVESTMENT YEAR METHOD AND PORTFOLIO METHOD
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 choo...
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| Format: | Article |
| Language: | English |
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Universitas Pattimura
2022-09-01
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| Series: | Barekeng |
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| Online Access: | https://ojs3.unpatti.ac.id/index.php/barekeng/article/view/5365 |
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| author | Jevilia Aryento Felivia Kusnadi Dharma Lesmono |
| author_facet | Jevilia Aryento Felivia Kusnadi Dharma Lesmono |
| author_sort | Jevilia Aryento |
| collection | DOAJ |
| description | 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. |
| format | Article |
| id | doaj-art-4e8e2670b2be494ba2cdff7d13dbf9ba |
| institution | Kabale University |
| issn | 1978-7227 2615-3017 |
| language | English |
| publishDate | 2022-09-01 |
| publisher | Universitas Pattimura |
| record_format | Article |
| series | Barekeng |
| spelling | doaj-art-4e8e2670b2be494ba2cdff7d13dbf9ba2025-08-20T03:36:12ZengUniversitas PattimuraBarekeng1978-72272615-30172022-09-0116378779610.30598/barekengvol16iss3pp787-7965365CALCULATION OF CREDITED INTEREST RATE WITH INVESTMENT YEAR METHOD AND PORTFOLIO METHODJevilia Aryento0Felivia Kusnadi1Dharma Lesmono2Parahyangan Catholic UniversityParahyangan Catholic UniversityParahyangan Catholic UniversityThe 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.https://ojs3.unpatti.ac.id/index.php/barekeng/article/view/5365credited interest rateinvestment year methodportfolio methodasset rollover |
| spellingShingle | Jevilia Aryento Felivia Kusnadi Dharma Lesmono CALCULATION OF CREDITED INTEREST RATE WITH INVESTMENT YEAR METHOD AND PORTFOLIO METHOD Barekeng credited interest rate investment year method portfolio method asset rollover |
| title | CALCULATION OF CREDITED INTEREST RATE WITH INVESTMENT YEAR METHOD AND PORTFOLIO METHOD |
| title_full | CALCULATION OF CREDITED INTEREST RATE WITH INVESTMENT YEAR METHOD AND PORTFOLIO METHOD |
| title_fullStr | CALCULATION OF CREDITED INTEREST RATE WITH INVESTMENT YEAR METHOD AND PORTFOLIO METHOD |
| title_full_unstemmed | CALCULATION OF CREDITED INTEREST RATE WITH INVESTMENT YEAR METHOD AND PORTFOLIO METHOD |
| title_short | CALCULATION OF CREDITED INTEREST RATE WITH INVESTMENT YEAR METHOD AND PORTFOLIO METHOD |
| title_sort | calculation of credited interest rate with investment year method and portfolio method |
| topic | credited interest rate investment year method portfolio method asset rollover |
| url | https://ojs3.unpatti.ac.id/index.php/barekeng/article/view/5365 |
| work_keys_str_mv | AT jeviliaaryento calculationofcreditedinterestratewithinvestmentyearmethodandportfoliomethod AT feliviakusnadi calculationofcreditedinterestratewithinvestmentyearmethodandportfoliomethod AT dharmalesmono calculationofcreditedinterestratewithinvestmentyearmethodandportfoliomethod |