PREMIUM FORECASTING OF AN INSURANCE COMPANY: AUTOMOBILE INSURANCE

M. Ebrahim Fouladvand () and Amir H. Darooneh
Additional contact information
M. Ebrahim Fouladvand: Department of Physics, Zanjan University, P. O. Box 45196-313, Zanjan, Iran
Amir H. Darooneh: Department of Physics, Zanjan University, P. O. Box 45196-313, Zanjan, Iran

International Journal of Modern Physics C (IJMPC), 2005, vol. 16, issue 03, 377-387

Abstract: We present an analytical study of an insurance company. We model the company's performance on a statistical basis and evaluate the predicted annual income of the company in terms of insurance parameters namely the premium, the total number of insured, average loss claims etc. We restrict ourselves to a single insurance class the so-calledautomobile insurance. We show the existence of a crossover premiumpcbelow which the company is operating at a loss. Abovepc, we also give a detailed statistical analysis of the company's financial status and obtain the predicted profit along with the corresponding risk as well as ruin probability in terms of premium. Furthermore we obtain the optimal premiumpoptwhich maximizes the company's profit.

Keywords: Insurance; profit; premium; risk (search for similar items in EconPapers)
Date: 2005
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0129183105007170
Access to full text is restricted to subscribers

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:wsi:ijmpcx:v:16:y:2005:i:03:n:s0129183105007170

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0129183105007170

Access Statistics for this article

International Journal of Modern Physics C (IJMPC) is currently edited by H. J. Herrmann

More articles in International Journal of Modern Physics C (IJMPC) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().