An accurate calculation of premium reserves will ensure that the insurance company can pay claims. Premium reserves are funds collected by insurance companies which are the difference between the sum insured and the value of payments during the insurance period prepared for claim payments. There are several methods for calculating premium reserves, but the methods that are the focus of this study are the Zillmer method and the Premium Sufficiency method, extensions of the prospective method. This study aims to compare the two methods using the Vasicek model to determine the stochastic interest rate. Then the Ordinary Least Square method is used to estimate the Vasicek interest rate parameter. In comparing the two premium reserve methods, this study builds a simulation for reference male and female insureds using Bank Indonesia reference rate data for 2017-2021 and the Indonesian Mortality Table IV from 2019. The results of this study indicate that premiums reserve calculations using the Zillmer method yield less value than the Premium Adequacy method for both male and female insureds.

In addition to premium subsidies, Indonesia's government implements other intervention programs as a stimulus to boost farmers' participation in Rice Farmers Business Insurance (AUTP). Therefore, this study aimed to investigate the effect of the government intervention program in 2019 that requires participation in AUTP as a prerequisite for redeeming subsidized fertilizer. This study also aimed to ascertain the socioeconomic factors that influence farmers to participate. Meanwhile, primary data were obtained through questionnaires distributed from March 23 to April 6, 2020, and completed by 103 farmers in 14 villages in Sliyeg, Indramayu. The data were analyzed with McNemar Test to determine the effect of farmers' participation in AUTP when the government intervention program was implemented and terminated. Furthermore, Logistic Regression Analysis is used to ascertain the socioeconomic factors that influence farmers to participate. The result showed that the program affects their participation in AUTP. This level is higher when the program is enforced and decreased when terminated. The socio-economics variables that influenced farmers to participate in AUTP when implemented in the government program are land ownership status and land size, while only land size influenced them when terminated.

The global food production process is being threatened due to the uncertainty experienced in the weather pattern, especially the agricultural sector being placed at the risk of unpredictable climatic conditions. Moreover, climate uncertainties, such as floods and drought, directly and indirectly, impact the level of crop failure. Therefore, Indonesia’s Government has launched a program known as the Rice Farm Insurance (AUTP) in 2015, using a state-owned enterprise as the single administrator to manage these challenges. However, several other problems have been discovered using this program, such as the low level of farmer participation, unprofitable portfolio management, and a limited number of farm areas. Therefore, this research aims to formulate an AUTP optimization strategy through the private sector’s involvement to mitigate these problems. The private sector’s inclusion in managing crop insurance is due to the US and some Asian countries’ success concerning its more comprehensive access to innovation, technology, and resources. The Analytical Hierarchical Process approach is a decision-making technique developed for cases with multiple analysis levels and used with the primary data obtained through questionnaires distributed to 5 experts representing the government, the general insurance industry, researchers, and farmers. The results showed that the influential actor was the government; the most successful factor was a collaboration among stakeholders. The prioritized objective was to increase farmer participation. The selected strategy was to form a consortium of public and private sector enterprises.