Abstract
The effect of inflation of premium income and claims size distribution, but not of free reserves, on the probability of ruin of an insurer is studied.
An interesting similarity between this problem and the ruin problem in an experience-rated scheme is exhibited This similarity allows the deduction of parallel results for the two problems in later sections. It is shown t h a t the probability of ruin is always increased when the (constant) inflation rate is increased.
Volume
10:2
Page
149-162
Year
1979
Categories
Actuarial Applications and Methodologies
Ratemaking
Experience Rating
Financial and Statistical Methods
Risk Pricing and Risk Evaluation Models
Probability of Ruin
Actuarial Applications and Methodologies
Dynamic Risk Modeling
Solvency Analysis
Publications
ASTIN Bulletin
