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What do distortion risk measures tell us on excess of loss reinsurance with reinstatements ?

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Author Info
Antonella Campana () (Department SEGeS, University of Molise)
Paola Ferretti () (Department of Applied Mathematics, University of Venice)

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Abstract

In this paper we focused our attention to the study of an excess of loss reinsurance with reinstatements, a problem previously studied by Sundt [5] and, more recently, by Mata [4] and HÄurlimann [3]. As it is well-known, the evaluation of pure premiums requires the knowledge of the claim size distribution of the insurance risk: in order to face this question, different approaches have been followed in the actuarial literature. In a situation of incomplete information in which only some characteristics of the involved elements are known, it appears to be particularly interesting to set this problem in the framework of risk adjusted premiums. It is shown that if risk adjusted premiums satisfy a generalized expected value equation, then the initial premium exhibits some regularity properties as a function of the percentages of reinstatement.

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File URL: http://www.dma.unive.it/wpdma/2008wp175.pdf
File Format: application/pdf
File Function: First version, 2008
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Publisher Info
Paper provided by Department of Applied Mathematics, University of Venice in its series Working Papers with number 175.

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Length: 11 pages
Date of creation: Nov 2008
Date of revision:
Handle: RePEc:vnm:wpaper:175

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Related research
Keywords: Excess of loss reinsurance; reinstatements; distortion risk measures; expected value equation;

Find related papers by JEL classification:
G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies

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This page was last updated on 2009-11-25.


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