Modeling the esscher premium principle for a system of elliptically distributed risks

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Abstract

The Esscher premium principle provides an important framework for allocating a certain loaded premium for some claim (risk) in order to manage the risks of insurance companies. In this paper, we show how to model the celebrated Esscher premium principle for a system of elliptically distributed dependent risks, where each risk is greater or equal than its value-at-risk. Furthermore, we present calculations of the proposed multivariate risk measure, investigate its properties and formulas, and show how special elliptical models can be implemented in the theory.

Original languageEnglish
Title of host publicationICORES 2019 - Proceedings of the 8th International Conference on Operations Research and Enterprise Systems
EditorsGreg H. Parlier, Federico Liberatore, Marc Demange
PublisherSciTePress
Pages102-110
Number of pages9
ISBN (Electronic)9789897583520
DOIs
StatePublished - 1 Jan 2019
Event8th International Conference on Operations Research and Enterprise Systems, ICORES 2019 - Prague, Czech Republic
Duration: 19 Feb 201921 Feb 2019

Publication series

NameICORES 2019 - Proceedings of the 8th International Conference on Operations Research and Enterprise Systems

Conference

Conference8th International Conference on Operations Research and Enterprise Systems, ICORES 2019
Country/TerritoryCzech Republic
CityPrague
Period19/02/1921/02/19

Keywords

  • Esscher premium
  • Extreme risks
  • Multivariate risk measures
  • Premium principles
  • Tail value at risk
  • Value-at-risk

ASJC Scopus subject areas

  • Management Science and Operations Research
  • Computational Theory and Mathematics
  • Computer Science Applications
  • Control and Systems Engineering

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