TY - JOUR TT - VALUATION APPROACH IN TURKISH INSURANCE SECTOR: NET PREMIUM VALUATION METHOD AND LEVEL OF CAPITALIZATION AU - Terzioğlu, Mehmet Kenan PY - 2013 DA - December JF - Süleyman Demirel Üniversitesi Sosyal Bilimler Enstitüsü Dergisi JO - SDU SBE PB - Süleyman Demirel University WT - DergiPark SN - 1304-6373 SP - 183 EP - 197 IS - 18 KW - Güvenlik kriteri KW - Kar paylı hayat sigortası KW - Kar KW - Thiele diferansiyel denklemi KW - Teknik taban N2 - In today's world, insurance products emerge not only as a means of protection but also an important investment tool. This paper describes the valuation of participating life insurance contracts by net premium method. When valuating of participating life insurance policy, premiums are loaded with safety margins to provide policy holders from the effects of the impact of the financial and demographic changes. Due to the importance of avoidance of capitalization in valuation process, it has been observed that determination of the valuation method to be used has a great importance in valuing participating life insurance. This paper shows that net premium valuation method cannot avoid capitalization. Moreover, it is observed that insurance companies face with valuation losses by using net premium valuation method when policy holders stop the premium payments before the term of the policy CR - BABBEL, D.F., MERRILL C., (1998), "Economic valuation models for insurers", CR - North American Actuarial Journal, 2,1-17. GATZERT N., SCHMEISER H., (2006), "Implicit options in life insurance: CR - Papers on Risk Management and Insurance, 26,1-20. GERBER, H.U., (1997), "Life Insurance Mathematics", Springer, 217 . CR - HOEM, J.M., (1988), "The Versatility of Markov chain as a tool in the mathematics of life insurance", Transactions of 23rd CR - International Congress of Actuaries, 171-202. LINNEMANN, P., (1993), "On the application of Thiele’s differential equation in Economics, 13, 63-74. CR - LINNEMANN, P., (2002), "Comparison of net premium and paid_up benefit valuation principles", Blatter der Deutschen Gesellschaft für CR - Versicherungsmathematik, 25, 629-647. MOLLER, T., STEFFENSEN, M., (2007), "Market-Valuation Methods in Life Insurance and Pension Insurance", Cambridge University Press, 279 . CR - NORBERG, R., (2002), "Basic Life Insurance Mathematics", Cambridge University Press, 552 . CR - OLIVIERI, A., (1999), "Safe-side requirements in the framework of multistate CR - Stochastic Models in Business and Industry, 15, 393-408. RAMLAU-HANSEN, H., (1988), "The emergence of profit in life insurance", Insurance: Mathematics and Economics, 7, 225-236. CR - RAMLAU-HANSEN, H., (1991), "Distribution of surplus in life insurance", Astin Bulletin, 21,57-71. CR - RANSON R.H., HEADDON C.P., (1989), "With-Profits without mystery", TERZİOĞLU M.K.,(2009), "Hayat Sigortalarında Değerleme CR - Yaklaşımları", Hacettepe Üniversitesi Aktüerya Bilimleri Yüksek Lisans Tezi, 2-70. UR - https://dergipark.org.tr/en/pub/sbe/issue//247977 L1 - https://dergipark.org.tr/en/download/article-file/215730 ER -