On the Characterization of Wang’s Class of Premium Principles
نویسندگان
چکیده
A premium principle is an economic decison rule used by the insurer in order to determine the amount of the net premium for each risk in his portfolio. In this paper we investigate the problem of determining the premium principle to be used. First, we discuss some desirable properties of a premium principle. We prove that the only premium principles that possess these properties belong to a class of premium principles introduced by Wang (1996). Similar results can be found in Wang, Young & Panjer (1997).
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