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Computing the mean and the variance of the cedent's share for largest claims reinsurance covers

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Author Info
Hess, Christian
Abstract

We present mathematical results allowing one to evaluate the moments of order 1 and 2 of the cedent's share in the framework of reinsurance treaties based on ordered claim sizes. These results consist of closed analytical formulas that do not involve any approximation procedure. This is illustrated by numerical examples when the claim number has the Poisson or the negative binomial distribution, and the claim cost has the exponential or the Pareto distribution.

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File URL: http://www.sciencedirect.com/science/article/B6V8N-4VNH3NF-1/2/eb27ba085fb81d7a6801fa36f0f3622a
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Publisher Info
Article provided by Elsevier in its journal Insurance: Mathematics and Economics.

Volume (Year): 44 (2009)
Issue (Month): 3 (June)
Pages: 497-504
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Handle: RePEc:eee:insuma:v:44:y:2009:i:3:p:497-504

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Web page: http://www.elsevier.com/locate/inca/505554

For technical questions regarding this item, or to correct its listing, contact: (Heidi Boesdal).

Related research
Keywords: Largest claims reinsurance Order statistics Extreme value theory Cedent's point of view;

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This page was last updated on 2009-12-30.


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