The Total Claim Amount in a Portfolio
We consider a certain portfolio of insurance policies and the total amount of claims arising from it during a given period (e.g. a year). We are particularly interested in the probability distribution of the total claim amount, which will allow us to estimate the risk and show whether or not there is a need for reinsurance.
KeywordsRecursive Calculation Individual Claim Compound Poisson Distribution Negative Claim Total Claim Amount
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