IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

A Discrete Time Pricing Model for Individual Insurance Contracts

Listed author(s):
  • Kiseok Oh
  • Han B. Kang
Registered author(s):

    Most ratemaking principles or models for insurance pricing in the literature do not seem to incorporate at least one of the following three elements: contingency of claims, investment income of insurers, and insolvency risk of insurers. As far as we know, Doherty-Garven (1986) appears to be the only model that incorporates all the three components. Their model provides a solution for the “fair” rate of return of an insurer or the aggregate premium of an insurer. Their study has some important implications in terms of “excessiveness” and “adequacy” of the aggregate premium. In this paper, we developed a pricing model with which a premium can be assigned to an insurance contract. Our effort may have some important implications in terms of the “fairness” of the individual premium of an insurance contract.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by Western Risk and Insurance Association in its journal Journal of Insurance Issues.

    Volume (Year): 27 (2004)
    Issue (Month): 1 ()
    Pages: 41-65

    in new window

    Handle: RePEc:wri:journl:v:27:y:2004:i:1:p:41-65
    Contact details of provider:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:wri:journl:v:27:y:2004:i:1:p:41-65. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (James Barrese)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.