On Stochastic Orders and its applications : Policy limits and Deductibles

TL;DR

This paper explores stochastic orders and their applications in insurance, including policy limits, deductibles, copula comparisons, risk models, and reinsurance, proposing a new risk model and optimal allocation strategies.

Contribution

It introduces a new insurance risk model and analyzes the ordering of optimal policy limits and deductibles within this framework.

Findings

Comparison of copula families using stochastic orders

Development of a new insurance risk model

Optimal allocation of policy limits and deductibles

Abstract

This paper focuses on stochastic orders and its applications : policy limits and deductibles. Further, many applications and some examples are given : comparison of two families of copulas, individual and collective risk model, reinsurance contracts and dependent portfolios increase risk. More precisely, we propose a new model for insurance risks while we give some properties. To this end, we obtain the ordering of the optimal allocation of policy limits and deductibles for this model.