Abstract

Journal of Actuarial Practice

Volume 10, Numbers 1 and 2, 2002


Some Comments on the Pricing of an Exotic Excess of Loss Treaty

Jean-François Walhin

Abstract

This paper uses a multivariate analog of Panjer's algorithm todevelop a method for pricing a complex excess of loss treaty. The treaty is such that some layers inure to the benefit of other layers. The structure of this treaty is discussed. Numerical examples are provided.

Key words and phrases: multivariate Panjer's algorithm, paid reinstatements, inuring layers, order of claims.

Corresponding Author:

Jean-François Walhin

Université Catholique de Louvain,

Institut des Sciences Actuarielles

Grand-Rue, 54 B-1348

Louvain-la-Neuve

BELGIUM


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