Non-Life Insurance Pricing: Multi Agents Model
Amir H. Darooneh
TL;DR
This paper applies the maximum entropy principle to non-life insurance pricing, revisiting the economic equilibrium concept and deriving results consistent with Bühlmann's economic premium principle.
Contribution
It introduces a novel application of the maximum entropy principle to non-life insurance pricing, aligning it with established economic premium concepts.
Findings
Derives non-life insurance prices using maximum entropy.
Recovers Bühlmann's economic premium results.
Revises the concept of economic equilibrium in insurance pricing.
Abstract
We use the maximum entropy principle for pricing the non-life insurance and recover the B\"{u}hlmann results for the economic premium principle. The concept of economic equilibrium is revised in this respect.
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Taxonomy
TopicsInsurance, Mortality, Demography, Risk Management · Complex Systems and Time Series Analysis · Stochastic processes and financial applications