On Unknown Accumulations in Accident Insurance: An Upper Bound of the Expected Excess Claim

An upper bound of the expected excess claim is deduced depending on the following parameters: the expected number of victims per accident, the minimum number of victims, the maximum number of victims, the market share of the cedant, the expected indemnity per victim, the maximum indemnity per victim. If in addition the cedant’s expected loss ratio is given then an upper bound of the reinsurance risk rate can be calculated.

Keywords: Binomial distribution, stop-loss order, dangerous distribution.