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COMPUTATIONS OF REINSURANCE PREMIUMS.pdf (1.07 MB)
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COMPUTATION OF REINSURANCE PREMIUMS BY INCORPORATING A COMPOSITE LORGNORMAL MODEL IN A RISK-ADJUSTED PREMIUM PRINCIPLE: APPLICATION TO GAM’S AUTOMOBILE INSURANCE BRANCH

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posted on 18.03.2022, 22:08 authored by Gilbert ChambashiGilbert Chambashi
This paper presents a formula for calculating a reinsurance premium which has been
determined by incorporating a lognormal-burr model into a risk-adjusted premium calculating
principle called the PH-transform principle. The lognormal-burr model has been selected and
validated as the best fitting model for the used insurance data among the eight candidates of
composite lognormal models. The formula has then been applied in calculating reinsurance
premiums for an automobile insurance branch under an excess of loss non-proportional
reinsurance treaty.

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Declaration of conflicts of interest

The Author declares that there are no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

Corresponding author email

g.chambashi@zambia.unicaf.org

Lead author country

Zambia

Lead author job role

Higher Education Lecturer

Lead author institution

Unicaf University

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