Abstract
A premium calculation principle is a functional assigning to a random variable (or its distribution function) a real number. The interpretation is rather obvious. The random variable stands for the possible claims of a risk whereas the resulting number is the premium charged for assuming this risk. Of course, in economics premiums are not only depending on the risk but also on market conditions. This paper develops a framework for permiums determined as equilibrium market prices for accepting the risk of the random variable of claim payments.
Volume
11
Page
52-60
Year
1980
Categories
RPP1
Publications
ASTIN Bulletin
