Insurance Planning Models: Price Competition And Regulation Of Financial Stability

Insurance Planning Models: Price Competition and Regulation of Financial Stability is a book that delves into the internal organization of the modern general insurance business, subject to intensive state regulation to maintain long-term efficiency, honesty, security, and stability. It provides quantitative recommendations and directives to competing insurers and regulators using long-term dynamic models to improve regulatory methods and develop quantitative recommendations. The book is addressed to a wide range of readers and offers rigorous probabilistic models of long-term insurance business based on the laws of mass phenomena.

Format: Hardback
Length: 356 pages
Publication date: 31 August 2021
Publisher: World Scientific Publishing Co Pte Ltd

Insurance Planning Models: Price Competition and Regulation of Financial Stability is a captivating new book that delves into the intricate inner workings of the modern general insurance business. While many individuals are aware of the extensive state regulation that governs this industry, aimed at ensuring long-term efficiency, honesty, security, and stability in the interests of policyholders, there is a lack of understanding regarding the mechanisms and strategies employed to achieve these noble goals.

Except for a basic understanding of the regulatory framework, the varying market positions of insurance companies, their distinct objectives, and the competitive nature of their endeavors, including the use of policy prices as a tool, not many people possess a comprehensive grasp of how to attain these deserving outcomes. In developing quantitative recommendations and directives for competing insurers, regulators rely on certain models. In the early 1900s, such models were proposed, offering valuable insights into the probabilistic nature of the insurance process. However, they were limited in their direct application to practical problems of insurance regulation.

This book serves as a comprehensive guide, offering meticulously constructed long-term dynamic models designed to enhance regulatory methods and provide quantitative recommendations through a combination of analytical calculations and computer simulation. It caters to a wide audience, including interested policyholders, economists with a focus on insurance management and regulation, and mathematicians seeking to expand the applications of their knowledge.

Dedicated to addressing certain issues that are either inadequately presented or entirely absent in the literature, this book endeavors to delve into the goals faced by the insurance industry from a mathematical modeling perspective. It is an attempt to gain insights into the challenges and opportunities that lie within the realm
insurance industry.

ISBN-13: 9789811204654