Abstract This paper introduces and demonstrates the use of quantum computers for asset–liability management (ALM). A summary historical current practices in ALM used by actuaries is given showing how challenges have previously been met. We give an insight into what may be like immediate future demonstrating can ALM. algorithm optimising calculations presented tested using a computer. conclude t...

We present a particle-based framework for estimating the position of a vehicle using map information and measurements of speed. Two measurement functions are considered. The first is based on the assumption that the lateral force on the vehicle does not exceed critical limits derived from physical constraints. The second is based on the assumption that the driver approaches a target speed deriv...

Moral hazard in natural disaster insurance markets has the effect that policyholders prepare less for disasters, which increases the risk they face. However, moral hazard may not arise due to high risk aversion of insured individuals and/or the inherent insurance market context. Chapter 4 offers a comprehensive empirical study of the relation between disaster risk reduction and insurance covera...

Abstract: A common feature of retirement income products is that their payouts depend on the lifetime of policyholders. A typical example is a life annuity policy which promises to provide benefits regularly as long as the retiree is alive. Consequently, insurers have to rely on “best estimate” life tables, which consist of age-specific mortality rates, in order to price these kind of products ...

We study a competitive multiline insurance industry, in which insurance companies with limited liability choose which insurance lines to cover and the amount of capital to hold. Premiums are determined by no-arbitrage option pricing methods. The results are developed under the realistic assumptions that insurers face friction costs in holding capital and that the losses created by insurer defau...

One of the most visible consumer protections in the Patient Protection and Affordable Care Act is the requirement that health insurers pay out at least 80 percent to 85 percent of premium dollars for medical care expenses. Insurers that pay out less than this minimum "medical loss ratio" (MLR) must rebate the difference to their policyholders, starting in 2011. Using insurers' MLR data from 201...

We introduce a class of Bayesian infinite mixture models first introduced by Lo (1984) to determine the credibility premium for a non-homogeneous insurance portfolio. The Bayesian infinite mixture models provide us with much flexibility in the specification of the claim distribution. We employ the sampling scheme based on a weighted Chinese restaurant process introduced in Lo et al. (1996) to e...