An Improved Error Bound for the Compound Poisson Approximation of a Nearly Homogeneous Portfolio

For the case of a portfolio with identical claim amount distributions, Gerber's error bound for the compound Poisson approximation ~s improved (m the case X t> 1). The result can also be applied to more general portfolios by partitioning them into homogeneous subportfolios. Keywords Compound Poisson distribution; homogeneous portfolio.