Profit/Contingency Loadings and Surplus: Return and Ruin Implications

Abstract
As its name suggests, the profit/contingency loading in the insurance rate serves two purposes: (1) to aid solvency by absorbing 8 some degree of fluctuation in loss experience and (2) t o provide a suitable average return to the underwriter.
Volume
May
Page
352-366
Year
1979
Categories
Financial and Statistical Methods
Risk Pricing and Risk Evaluation Models
Capital Theory
Financial and Statistical Methods
Risk Pricing and Risk Evaluation Models
Probability of Ruin
Financial and Statistical Methods
Risk Pricing and Risk Evaluation Models
RAROC
Financial and Statistical Methods
Risk Pricing and Risk Evaluation Models
Traditional Risk Load (Profit Margin);
Publications
Casualty Actuarial Society Discussion Paper Program
Authors
Gary G Venter