IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/34780.html
   My bibliography  Save this paper

The theorem of existence of the ruptures in probability scale and the basic question of insurance

Author

Listed:
  • Harin, Alexander

Abstract

The theorem of existence of the ruptures in the probability scale was proved in 2010. The theorem is used to analyze and to partially answer to the basic questions of insurance. The question is “To insure or not”. The goal of this paper is to reveal pure mathematical aspects of insurance processes and to analyze these aspects by pure mathematical methods, including application of the theorem. Its most significant result: when uncertainty increases, then taking the theorem into account may reverse insurant’s and insurer’s decisions to the opposite ones.

Suggested Citation

  • Harin, Alexander, 2011. "The theorem of existence of the ruptures in probability scale and the basic question of insurance," MPRA Paper 34780, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:34780
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/34780/1/MPRA_paper_34780.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. David M. Cutler & Amy Finkelstein & Kathleen McGarry, 2008. "Preference Heterogeneity and Insurance Markets: Explaining a Puzzle of Insurance," American Economic Review, American Economic Association, vol. 98(2), pages 157-162, May.
    2. Winter, Ralph A, 1991. "Solvency Regulation and the Property-Liability "Insurance Cycle."," Economic Inquiry, Western Economic Association International, vol. 29(3), pages 458-471, July.
    3. Emilio C. Venezian, 2006. "The use of spectral analysis in insurance cycle research," Journal of Risk Finance, Emerald Group Publishing, vol. 7(2), pages 177-188, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    insurance; underwriting; probability; uncertainty; dispersion;

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:34780. 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: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.