actuaryinmaking
09-15-2005, 02:10 PM
Que.1 Individual claim amounts from a non-life insurance portfolio have an Exponential distribution with parameter 0.00006. The insurer arranges an excess of loss reinsurance treaty with a retention limit of $50000 on any claim for this portfolio, so that the insurer pays the whole of a claim if it is $50000 or less but pays only $50000 for any claim which exceeds this amount. If an individual has two policies find the following:
(i) The probability that the reinsurance will involve in respect of claims under both policies.
(ii) The total claims under both policies is less then $50000.
Que. 2 The individual claim size from an insurer’s portfolio has a log-normal distribution with parameters (10, 0.81). The insurer is considering taking an excess of loss reinsurance treaty with retention level of $40000. Find the mean of the net claims payable by the insurer.
(i) without reinsurance treaty
(ii) with reinsurance treaty
Que. 3 Claims from a portfolio are believed to have a Pareto Distribution with parameters (8, 2000). An excess of loss reinsurance treaty is arranged with a retention limit of $900. Inflation is a constant 10% per annum. Find the following :
(i) The mean amount payable by the insurer without allowing for inflation.
(ii) The mean amount payable by the insurer allowing for inflation
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(i) The probability that the reinsurance will involve in respect of claims under both policies.
(ii) The total claims under both policies is less then $50000.
Que. 2 The individual claim size from an insurer’s portfolio has a log-normal distribution with parameters (10, 0.81). The insurer is considering taking an excess of loss reinsurance treaty with retention level of $40000. Find the mean of the net claims payable by the insurer.
(i) without reinsurance treaty
(ii) with reinsurance treaty
Que. 3 Claims from a portfolio are believed to have a Pareto Distribution with parameters (8, 2000). An excess of loss reinsurance treaty is arranged with a retention limit of $900. Inflation is a constant 10% per annum. Find the following :
(i) The mean amount payable by the insurer without allowing for inflation.
(ii) The mean amount payable by the insurer allowing for inflation
Quick reply appreciable
Thread locked. If you want to respond, respond here (http://www.actuarialoutpost.com/actuarial_discussion_forum/showthread.php?t=62881), in Course M.
This thread is locked, and will be deleted tomorrow.