Individual Risk Theory and Risk Statistics as Applied to Fire Insurance

Risk Theory for Life Insurance is simplified by the fact that the distribution ? (x) of claim amounts x approximately coincide with the distribution of "Risk sums" (not exactly, owing to differences in the claim frequency with age and actual state of health). The dependence on the claim frequency is eliminated by the introduction of a new time variable, and the system reduced to a (stationary) Poisson Process, which should be valid at least for "large" risk systems and for the total Life branch for a moderate sequence of years. Fire and Allied Lines, Profit Factor, Rate of Return, Risk