INSOLVENCY PROBABILITY IN REINSURANCE TREATY: A CASE STUDY IN MALAYSIA

Noriszura Ismail and Ansar Asnawi Ahmad Anuar
Additional contact information
Noriszura Ismail: Faculty of Science and Technology Universiti Kebangsaan Malaysia, Malaysia
Ansar Asnawi Ahmad Anuar: Faculty of Science and Technology Universiti Kebangsaan Malaysia, Malaysia

Perspectives of Innovation in Economics and Business (PIEB), 2009, vol. 3, issue 3, 62-64

Abstract: In developing countries such as Malaysia, the availability of reinsurance arrangements provides several advantages to the primary insurers such as keeping their risk exposures at prudent levels by having their large risk exposures reinsured by another company, meeting client requests for larger insurance coverage by having their limited financial sources supported by another company, and acquiring underwriting skills, experience and ability of handling complex claims by depending on another company for such services. This paper aims to model insurance claims and assess the insolvency probability of reinsurance treaties. Claims data was obtained from one of the leading insurers in Malaysia and R programming with actuar package is used to compute the probability of insolvency.

Keywords: Reinsurance; pricing; insolvency probability; excess-of-loss. (search for similar items in EconPapers)
JEL-codes: C10 C13 (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations:

Downloads: (external link)
http://academicpublishingplatforms.com/article.php ... &number=3&article=62 (application/pdf)
http://academicpublishingplatforms.com/article.php ... &number=3&article=62 (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:pdc:jrpieb:v:3:y:2009:i:3:p:62-64

Access Statistics for this article

Perspectives of Innovation in Economics and Business (PIEB) is currently edited by Jan Beseda

More articles in Perspectives of Innovation in Economics and Business (PIEB) from Prague Development Center Contact information at EDIRC.
Bibliographic data for series maintained by Jaroslav Holecek ( this e-mail address is bad, please contact ).