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Optimal reinsurance

Published online by Cambridge University Press:  14 July 2016

P. W. A. Dayananda
P. W. A. Dayananda*
Affiliation:
University of Ceylon, Colombo
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Extract

The fundamental principle underlying insurance is that the expected value of claims is equal to the premium. This was established by Bernoulli [4] in 1738. Subsequent work on the development of ‘risk theory’ led to research concerning the probability of ‘ruin’ of an insurance company. A critical study of these investigations was made by Borch [3] in a recent paper.

Information

Type
Research Papers
Information
Journal of Applied Probability , Volume 7 , Issue 1 , April 1970, pp. 134 - 156
Copyright
Copyright © Applied Probability Trust 

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References

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[6] CraméR, H. (1930) On the mathematical theory of risk. Skandia Jubilee Volume, Stockholm.Google Scholar
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