Regret-based optimal insurance design
Webincreasing retained loss function. By comparing Mahul’s optimal insurance so-lutions with ours, it is easy to find that this constraint plays a critical role in optimal insurance design with background risk and makes the optimal solution change from disappearing deductible to the stop-loss insurance . The rest of the paper is organized as ... WebNov 6, 2009 · Abstract. This paper introduces a method to measure regret theory, a popular theory of decision under uncertainty. Regret theory allows for violations of transitivity, and …
Regret-based optimal insurance design
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WebApr 29, 2024 · Optimal reinsurance designs based on risk measures have been widely studied in the literature of insurance and become an active research topic. Different … WebRegret-based Optimal Insurance Design Yichun Chi, Sheng Chao Zhuang In this paper, we investigate an optimal insurance design problem in which the insured's risk preference is …
WebOct 1, 2024 · In this paper, we investigate an optimal insurance design problem in which the insured's risk preference is of the regret-theoretical expected utility type and admissible … WebNov 6, 2009 · Abstract. This paper introduces a method to measure regret theory, a popular theory of decision under uncertainty. Regret theory allows for violations of transitivity, and it may seem paradoxical to quantitatively measure an intransitive theory. We adopt the trade-off method and show that it is robust to violations of transitivity.
WebRegret-based optimal insurance design. Insurance: Mathematics and Economics, Vol. 102. Assessment of Land Speculator’s Operation for Land Accessibility in Nigeria. 16 March … WebOptimal Insurance Without the Nonnegativity Constraint on Indemnities: Ambiguity and Belief Heterogeneity SSRN Electronic Journal 10.2139/ssrn.3014934
WebJun 3, 2024 · The principle of maximum utility is generally adopted to design the optimal insurance ... we propose a robust premium design strategy based on the min-max regret criterion where the disaster ...
WebMay 21, 2024 · A typical optimal reinsurance design model includes the following elements: (1) a risk or reward function adopted as the objective to measure an insurer's position; (2) … asf asi past papersWebDec 1, 2024 · With a degree of narrow framing k equal to 0.1, the optimal insurance contains two deductibles with D * = 4.68 and D ¯ * = 7.26 for low losses and high losses. For any intermediate losses between 5.05 and 7.63, a fixed indemnity equal to the premium with P = 0.37 is paid. 5. Discussions and conclusion. asfa standard september 2022WebApr 29, 2024 · Following the way of Bühlmann ( 1980 ), Chi et al. ( 2024) investigate the optimal reinsurance design under an economic premium principle π M ( Y) = E [ Y M], ∀ Y ∈ χ, where M is a non-negative random variable with E [ M] = 1 and reflects the reinsurance environment and other risks the reinsurer is facing. Theorem 4.3. asf baraniWebJan 15, 2024 · Abstract In this paper, we study insurance decisions when the policyholder evaluates insurance with narrow framing. We show that due to aversion to risk on the net insurance payoff, i.e., insurance indemnity minus insurance premium, narrow framing reduces insurance demand. This helps explaining the observed low insurance demand in … asfa surat gujaratWebRegret-based Optimal Insurance Design Yichun Chi, Sheng Chao Zhuang In this paper, we investigate an optimal insurance design problem in which the insured's risk preference is of the regret-theoretical expected utility type and admissible insurance contracts are set to satisfy both the principle of indemnity and the incentive-compatible condition. asfaw melese menfesawi mezmurWebJun 1, 1993 · Regret-based optimal insurance design. 2024, Insurance: Mathematics and Economics. Show abstract. In this paper, we investigate an optimal insurance design … asfa zardari with abdul sattar eidiWebThis paper continues an earlier investigation into the normative implications of decision regret and looks at situations where the joint probability distribution of consequences between alternatives is not specified at the time of the decision. ... Regret-based optimal insurance design. Insurance: Mathematics and Economics, Vol. 102. asfaw berhane