Underwriting strategy in a competitive insurance environment
type: Item
instance of: scholarly article
title: Underwriting strategy in a competitive insurance environment
zbMATH Open document ID: 0585.62175
DOI: 10.1016/0167-6687(86)90009-0
published in: Insurance Mathematics \& Economics
publication date: 1986-01-01T00:00:00Z
review text: An insurance market is considered, and it is the aim of the paper to derive properties of optimal pricing strategies for a finite planning horizon. Here, a strategy is optimal if it maximizes the discounted total profit. Under certain assumptions, e.g. price elasticity, different features of optimal strategies are developed. E.g., it is not optimal to follow the market during a period of premium rate depression, and especially loss leaders are not involved in optimal strategies. The paper is followed by three discussion articles. In these, among other things, it is stressed that the problem considered belongs to the fields of control theory or dynamic programming and that a probabilistic setting is desirable.
reviewed by: Wolf-Rüdiger Heilmann
Mathematics Subject Classification ID: 62P05
Mathematics Subject Classification ID: 91B62
Mathematics Subject Classification ID: 91B24
Mathematics Subject Classification ID: 90C39
zbMATH DE Number: 3938390
zbMATH Keywords: insurance market
zbMATH Keywords: optimal pricing strategies
zbMATH Keywords: finite planning horizon
zbMATH Keywords: discounted total profit
zbMATH Keywords: price elasticity
zbMATH Keywords: premium rate
zbMATH Keywords: loss leaders
author: Gregory Clive Taylor
MaRDI profile type: Publication
full work available at URL: 0167-6687(86)90009-0
OpenAlex ID: W2040171781
cites work: Q3286740
cites work: An Extension of the Bierman-Hausman Model for Credit Granting
cites work: Q3214758
description: scientific article; zbMATH DE number 3938390