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

Pure risk premiums under deductibles. A quantitative management in actuarial practice

Listed author(s):
  • Krzysztof Burnecki
  • Joanna Nowicka-Zagrajek
  • Aleksander Weron

It is common practice in most insurance lines for the coverage to be restricted by a deductible. In the paper we investigate the influence of deductibles on pure risk premiums. We derive simple but practical formulae for premiums under franchise, fix amount, proportional, limited proportional and disappearing deductibles in terms of the limited expected value function. Next, we apply the results to typical loss distributions, i.e. lognormal, Pareto, Burr, Weibull and gamma. Finally, we analyse a loss data of one of the power companies. We fit distributions to the data and show how the choice of the distribution and a deductible influences the premium.

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:
File Function: Draft, 2004
Download Restriction: no

Paper provided by Hugo Steinhaus Center, Wroclaw University of Technology in its series HSC Research Reports with number HSC/04/05.

in new window

Length: 23 pages
Date of creation: 2004
Handle: RePEc:wuu:wpaper:hsc0405
Contact details of provider: Postal:
Wybrzeze Wyspianskiego 27, 50-370 Wroclaw

Phone: +48-71-3203530
Fax: +48-71-3202654
Web page:

More information through EDIRC

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:wuu:wpaper:hsc0405. 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: (Rafal Weron)

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.