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Premium Calculations in Insurance Actuarial Approach
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Different forms of insurance are important parts of §our every day life. We buy car insurance, health §insurance, traveling insurance and other types of §contracts when we agree to pay a relatively small §price in order to get a protection against §significantly large uncertain prospective losses. §§One of the fundamental questions in the insurance §industry is haw much a certain contract should cost. §Price for the contract cannot be too low, because in §this case, the insurance company will not have §enough money to cover all the claims, and, at the §same time, price for the contract cannot be too high §because the contract will not be attractive for the §customers. As we see, it is very important to keep §the right balance when we price a contract.§§This book is devoted to the analysis of the most §widely used methods for pricing of insurance §contracts with known distributions of the future §losses. §§Book can be interesting for practitioners working in §insurance industry, students of actuarial and §financial study programs, and for other readers with §some knowledge of probability calculus.
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