Exposure-rating in liability reinsurance

Generalizations of common ILF models

“…The case of a fixed DLS has been analysed thoroughly by Mack and Fackler. The following corollary is a special case of the results in [2]. Corollary 1.…”

“…These features explain the popularity of the standard DLS model. In excess of a threshold, the standard DLS model corresponds to a collective model with Pareto distributed severity with α = 1 − log 2 (1 + z) < 1 (see [2]). The main drawback of the model is its inflexibility with respect to the severity.…”

Optimal premium allocation under stop-loss insurance using exposure curves

“…The "rating by a layer of insurance" method evaluates the proportion of losses with respect to the size of loss from aggregate loss distributions [17]. In [15], it is studied on the liability insurance in which the claim sizes can not be assumed to be scaled by sums insured. They analyze Riebesell's system introduced in 1936 from the perspective of the collective risk model theory.…”