Abstract:
Insurance transfers losses associated with risks to the insurer for a price, the premium. Considering a natural probabilistic framework for the insurance problem, we deri...Show MoreMetadata
Abstract:
Insurance transfers losses associated with risks to the insurer for a price, the premium. Considering a natural probabilistic framework for the insurance problem, we derive a necessary and sufficient condition on loss models such that the insurer remains solvent despite the losses taken on. In particular, there need not be any upper bound on the loss - rather it is the structure of the model space that decides insurability.
Published in: 2010 48th Annual Allerton Conference on Communication, Control, and Computing (Allerton)
Date of Conference: 29 September 2010 - 01 October 2010
Date Added to IEEE Xplore: 04 February 2011
ISBN Information: