Abstract
This chapter first reminds the reader of insurance premium calculation principles and of mathematical tools enabling portfolios to be ordered according to their risk levels—“orders” on risks. Next, it presents the most prevalent model of the process of total claim amounts generated by a portfolio, namely “the collective model”. This first chapter ends with the main results of ruin theory.
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Deelstra, G., Plantin, G. (2014). Elements of Risk Theory. In: Risk Theory and Reinsurance. EAA Series. Springer, London. https://doi.org/10.1007/978-1-4471-5568-3_1
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