Abstract
This paper summarizes some typical results generated from a set of general cash flow simulation models which were produced to mimic a statutory insurance company operating in a general economic environment. The flows resulting from the underwriting and investment sides of the business are treated in an integrated and dynamic fashin. A large number of economic, company-specific, tax-specific, surplus-specific, and other factors are allowed in these models. Several results concerning the influence of size of underwriting firm, combined ratio, variability of losses, impairment of capital and probability of insolvency are given.
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© 1989 Kluwer Academic Publishers
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Paulson, A.S., Dixit, R. (1989). Cash Flow Simulation Models for Premium and Surplus Analysis. In: Cummins, J.D., Derrig, R.A. (eds) Financial Models of Insurance Solvency. Huebner International Series on Risk, Insurance, and Economic Security, vol 10. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-2506-9_2
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DOI: https://doi.org/10.1007/978-94-009-2506-9_2
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-010-7631-9
Online ISBN: 978-94-009-2506-9
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