Document Type : Original Research Paper
Authors
Department of Bimometry, School of Mathematical Sciences, Shahid Beheshti University, Tehran, Iran
Abstract
Financial wealth is one of the important topics in risk management of financial institutions, especially insurance companies. In examining financial wealth, technical reserves are one of the most important parts and elements that have always been emphasized and addressed in laws and regulations. The purpose of this article is to model non-life insurance risks based on the actuarial approach in a multi-year context. There are different points of view in the time review of non-life insurance risks. In traditional methods, only the final point of view was considered; This means that uncertainty was determined from the risk to the final settlement. Recently, based on financial wealth, these risks should be evaluated and specified in a one-year perspective. Insurance companies need to review risks in the next few years for better risk management, especially in economic decisions. To model the risks, we use the collective loss random storage method, which is one of the actuarial methods, and a set of analytical formulas are presented based on it to calculate the multi-year non-life insurance risk. The risk of non-life insurance consists of the sum of the two risks of reserve (settlement of pending claim) and premium (settlement of future claim). Using the numerical example related to the third-party insurance policy, we estimate the non-life risks in one-year, final and multi-year time horizons.
Keywords
)
Letters to Editor
Send comment about this article