Stochastic Model for Participant Premium Calculation in Takaful Endowment in the Islamic Republic of Iran

Takaful Endowment is one of the product plans in Family Takaful. This research introduces the alternative method to calculate participant premium under Shari'ah law in Takaful Endowment. The aim is to find a stochastic model to replace the fixed interest rate. We examined this method for a ۲۰-year Takaful Endowment coverage by Monte-Carlo simulation. The assumption is that the administrative expenses are only charged in the first year. In addition, we performed ۲۰۰ times by Monte-Carlo simulations to generate the interest rate with initial steps of interest rates are ۵%, ۷%, and ۹%. In this research, the amount of participant premium is in the Participant Special Account (PSA) applied under the Actuarial Model.

کلیدواژه ها:

Participant premium ، Takaful Endowment ، Monte-Carlo simulation ، Family Takaful ، Shari'ah principles.