A theory of bonus in life insurance
نویسنده
چکیده
The issue of bonus in life insurance is considered in a model framework where the traditional set-up is extended by letting the experience basis (mortality, interest, etc.) be stochastic. A novel definition of the technical surplus on an insurance contract is proposed, and basic principles for its repayment as bonus are discussed. Making the experience basis an endogenous part of the model opens possibilities of model-based prognostication of future bonuses. Numerical illustrations are provided.
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ورودعنوان ژورنال:
- Finance and Stochastics
دوره 3 شماره
صفحات -
تاریخ انتشار 1999