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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.

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  • 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. 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.
    2. 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.
    3. Malinovskii, Vsevolod K., 2010. "Competition-Originated Cycles and Insurance Strategies," ASTIN Bulletin, Cambridge University Press, vol. 40(2), pages 797-843, November.
    4. 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.
    5. 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.
    6. 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.
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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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