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Business planning for a profit-seeking insurer under deficiency of information

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  • Malinovskii, Vsevolod K.

Abstract

This paper aims to model a profit-seeking firm in a regulated competitive insurance market in an epoch when future annual market prices become poorly predictable. It occurs when more and more non-antagonistic contenders cut their prices seeking for individual success. It aggravates randomness pertaining to insurance casualties. This paper deals with multi-year control strategy of a profit-seeking insurer aiming in this epoch to comply each year with legal solvency requirements, to keep its portfolio size more or less stable, and to keep business attractive for investments.

Suggested Citation

  • Malinovskii, Vsevolod K., 2015. "Business planning for a profit-seeking insurer under deficiency of information," Insurance: Mathematics and Economics, Elsevier, vol. 62(C), pages 215-226.
    • Handle: RePEc:eee:insuma:v:62:y:2015:i:c:p:215-226
    DOI: 10.1016/j.insmatheco.2015.03.013
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    References listed on IDEAS

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    1. Malinovskii, Vsevolod K., 2010. "Competition-Originated Cycles and Insurance Strategies," ASTIN Bulletin, Cambridge University Press, vol. 40(2), pages 797-843, November.
    2. Eric D. Beinhocker, 2013. "Reflexivity, complexity, and the nature of social science," Journal of Economic Methodology, Taylor & Francis Journals, vol. 20(4), pages 330-342, December.
    3. Malinovskii, Vsevolod K., 2014. "Annual intrinsic value of a company in a competitive insurance market," Insurance: Mathematics and Economics, Elsevier, vol. 55(C), pages 310-318.
    4. Dutang, Christophe & Albrecher, Hansjoerg & Loisel, Stéphane, 2013. "Competition among non-life insurers under solvency constraints: A game-theoretic approach," European Journal of Operational Research, Elsevier, vol. 231(3), pages 702-711.
    5. Taksar, Michael I. & Zhou, Xun Yu, 1998. "Optimal risk and dividend control for a company with a debt liability," Insurance: Mathematics and Economics, Elsevier, vol. 22(1), pages 105-122, May.
    6. Malinovskii, Vsevolod K., 2015. "On rational pricing for a profit-seeking insurer in the year of hard market," Insurance: Mathematics and Economics, Elsevier, vol. 62(C), pages 107-117.
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    1. Malinovskii, Vsevolod K., 2015. "On rational pricing for a profit-seeking insurer in the year of hard market," Insurance: Mathematics and Economics, Elsevier, vol. 62(C), pages 107-117.
    2. Chih-Te Yang & Yensen Ni & Mu-Hsiang Yu & Yuhsin Chen & Paoyu Huang, 2023. "Decoding the Profitability of Insurance Products: A Novel Approach to Evaluating Non-Participating and Participating Insurance Policies," Mathematics, MDPI, vol. 11(13), pages 1-16, June.

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