In this note we derive the expected total discounted profit of an insurer due to a single policy holder within a third-party liability insurance. We consider both a policy holder claiming optimally and non-optimally.

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doi.org/10.1016/0167-6687(91)90046-Z, hdl.handle.net/1765/11664
Insurance: Mathematics and Economics
Erasmus School of Economics

Dellaert, N., Frenk, H., & van der Laan, B. (1991). Insurers' profits in the third-party liability insurance. Insurance: Mathematics and Economics, 165–172. doi:10.1016/0167-6687(91)90046-Z