On a law of large numbers for insurance risks
classification
💱 q-fin.RM
keywords
largeinsurancenumbersriskrisksaccumulationallocationcatastrophic
read the original abstract
This note presents a kind of the strong law of large numbers for an insurance risk caused by a single catastrophic event rather than by an accumulation of independent and identically distributed risks. We derive this result by a large diversification effect resulting from optimal allocation of the risk to many reinsurers or investors.
This paper has not been read by Pith yet.
discussion (0)
Sign in with ORCID, Apple, or X to comment. Anyone can read and Pith papers without signing in.