INDIVIDUAL UNEMPLOYMENT INSURANCE - THE ANALYSIS OF NET PREMIUM RESERVES (Komercyjne ubezpieczenie od ryzyka utraty pracy - analiza rezerwy skladki netto)

The insurance reserve for an insurance contract is a difference between the actuarial value of future benefits and net premium. One of the ways of calculation of reserves is the prospective method. In the article a model for an individual insurance for financial consequences of unemployment is proposed. Net premiums and insurance reserves are calculated according to the method used in life insurances. In order to simplify the form of formulas, we use matrix notation introduced in [Debicka, Mazurek 2008; Debicka, Macierzowa reprezentacja...]. This approach enables us to give a flexible tool for the analysis of profits of multistate insurance contracts and makes the numerical procedures to be implemented easier. The aim of this paper is to analyze net premium reserves for unemployment insurances. Numerical examples are based on data taken from Labour Department in Jelenia Gora for 2004.