Optimal claim behaviour for third-party liability insurances or to claim or not to claim: that is the question
March 1990
Article
volume 9, issue 1 pp 59-76.
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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.
Keywords
Automatically Extracted Terms
- claim
- policy holder
- policy
- holder
- period
- insurance
- decision
- premium
- claim sizes
- damage
- model
- result
- claim size
- state
- bonus
- system
- accident
- table
- horizon
- value
