The activities of an insurer can be described as a system in which the acquired capital increases because of (earned) premiums and interest, and decreases because of claims and costs. See also the previous chapter. In this chapter we discuss some mathematical methods to determine the premium from the distribution of the claims. The actuarial aspect of a premium calculation is to calculate a minimum premium, sufficient to cover the claims and, moreover, to increase the expected surplus sufficiently for the portfolio to be considered stable.
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© 2008 Springer-Verlag Berlin Heidelberg
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(2008). Premium principles and Risk measures. In: Modern Actuarial Risk Theory. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-70998-5_5
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DOI: https://doi.org/10.1007/978-3-540-70998-5_5
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-70992-3
Online ISBN: 978-3-540-70998-5
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