A method is presented for identifying an expected profitable set of customers, to offer them an additional insurance product, by estimating a customer specific latent risk profile, for the additional product, by using the customer specific available data for an existing insurance product of the specific customer. For the purpose, a multivariate credibility estimator is considered and we investi...

The program SMIB was elaborated by Analytical Finance Group (D. Silvestrov, A. Malyarenko and M. Drozdenko) in the frame of the project “Stochastic Modeling of Insurance and Finance Processes and Systems” supported by the Knowledge Foundation. The program is based on multivariate dynamical model describing functioning of an insurance company. This model was developed by D. Silvestrov in co-oper...

The insurance industry is the major intermediator of long term credit in the U.S., and insurance ratings agencies have become powerful de facto regulators of insurance company investment policy and hence of capital allocation for the economy as a whole. If the rating process can be shown to be dishonest, arbitrary, or even simply lacking in rigor, the implications for the proper role of insuran...