Control of a portfolio of insurance Contracts

Karl Borch

ASTIN Bulletin, 1966, vol. 4, issue 1, 59-71

Abstract: 1.1. In this paper we shall consider a given portfolio of insurance contracts, and we shall study the following two problems:(i) How should this portfolio be reinsured?(ii) What reserves should the company maintain to pay claims which will be made under the contracts in the portfolio?This means that we shall ignore all questions as to how the company acquired the portfolio, i.e. some of the most important questions concerning management control of insurance companies, such as rating policy, underwriting control etc.1.2. Even the two simple problems, which are singled out for study in this paper, cannot be solved unless we specify the objectives and the external circumstances of the company.It is obvious that the reinsurance problem cannot be solved unless we know something about the company's “attitude to risk”, and about the cost of obtaining cover for various kinds of risk in the reinsurance market.It is also obvious that we cannot solve the reserve problem unless we specify the safety requirements, which the company has to satisfy. We shall see in the following that we may also have to specify the portfolios, which the company expects to underwrite in the future.

Date: 1966
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.cambridge.org/core/product/identifier/ ... type/journal_article link to article abstract page (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cup:astinb:v:4:y:1966:i:01:p:59-71_00

Access Statistics for this article

More articles in ASTIN Bulletin from Cambridge University Press Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK.
Bibliographic data for series maintained by Kirk Stebbing ().