Physics – Condensed Matter – Statistical Mechanics
Scientific paper
2002-11-24
Physics
Condensed Matter
Statistical Mechanics
Revtex, six pages including 5 figures
Scientific paper
We present an analytical study of an insurance company. We model the company's performance on a statistical basis and evaluate the predicted annual income of the company in terms of insurance parameters namely the premium, total number of the insured, average loss claims etc. We restrict ourselves to a single insurance class the so-called automobile insurance. We show the existence a crossover premium p_c below which the company is loss-making. Above p_c, we also give detailed statistical analysis of the company's financial status and obtain the predicted profit along with the corresponding risk as well as ruin probability in terms of premium. Furthermore we obtain the optimal premium p_{opt} which maximizes the company's profit.
Darooneh Amir H.
Fouladvand Ebrahim M.
No associations
LandOfFree
Premium Forecasting of an Insurance Company: Automobile Insurance does not yet have a rating. At this time, there are no reviews or comments for this scientific paper.
If you have personal experience with Premium Forecasting of an Insurance Company: Automobile Insurance, we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and Premium Forecasting of an Insurance Company: Automobile Insurance will most certainly appreciate the feedback.
Profile ID: LFWR-SCP-O-79688