Optimal claim behaviour for third-party liability insurances or to claim or not to claim: that is the question
View PDF Version
Redirect to publisher's version
(publisher's version.url.txt, 46 bytes)
It is proved that the optimal decision rule to claim or not to claim for damage is of the form: ‘to claim for damage only if its amount exceeds a certain limit’. Optimal critical claim sizes are derived, and a sensitivity analysis is given with respect to changes in (the parameters of) the distributions of the number of claims and the claim size.
- policy holder
- claim sizes
- claim size