Hostname: page-component-cd9895bd7-hc48f Total loading time: 0 Render date: 2024-12-24T01:42:14.018Z Has data issue: false hasContentIssue false
  • English
  • Français

Claims frequency and risk premium rate as a function of the size of the risk*

Published online by Cambridge University Press:  29 August 2014

Gunnar Benktander
Rights & Permissions [Opens in a new window]

Extract

Core share and HTML view are not available for this content. However, as you have access to this content, a full PDF is available via the ‘Save PDF’ action button.

The rapid economic growth in the last decade and the fierce competition have forced industry to raise its output, to develop new manufacturing methods and, where possible, to lower the fixed costs per unit of output. Consequently bigger factories and warehouses have been and are being built. Furthermore increasing labour costs have speeded up rationalisation and the introduction of efficient machinery.

Often, in the course of this development, too little attention has been paid to safety. This is reflected in the increasing number of Fire and Consequential Loss claims which have become so costly that the premium income has proved inadequate. Insurers have therefore adjusted their tariffs and increased their rates.

Of course, this is no solution to the problem. Insurers have to insist on adequate fire prevention and fire protection measures. Progress in the right direction can certainly be expedited by realistic tariffs which take account of all the positive features (sprinklers, inspection reports, etc.) and the negative features of a given risk (in commerce or industry).

Rating experts say that the tariffs of industrialized countries do not always point to the actual risk and claims fluctuations; one very important factor here, the size of the risk or of the building (i.e. its insured value, volume, surface area), brings me to the main theme of my today's talk.

Type
Research Article
Information
ASTIN Bulletin: The Journal of the IAA , Volume 7 , Issue 2 , September 1973 , pp. 119 - 136
Copyright
Copyright © International Actuarial Association 1974

Footnotes

*

English translation of an invited lecture delivered in German at the 19th International Congress of Actuaries, Oslo, 1972.

References

List of References

[1]d'Addario, R., Considerazioni sul tasso di premio delle assicurazioni incendi. Annali dell' Istituto di Statistics Volume XIVV, Bari 1940.Google Scholar
[2]Benktander, G., On the variation of the risk premium with the dimensions of the house within fire insurance. Skandinavisk Aktuarietidskrift, 1953.Google Scholar
[3]Benktander, G., Contribution of same titel as 2) to the 15th International Congress of Actuaries, New York, 1957.Google Scholar
[4]Benktander, G., Some aspects on reinsurance profits and loadings. The ASTIN Bulletin, Vol. V, Part 3, 1971.Google Scholar
[5]Benktander, G., A note on profit margin and insurance market capacity. Mitteilungen der Vereinigung schweizerischer Versicherungsmathematiker, Vol. 70, Nr. I, 1970. The Review, Reinsurance Number 1971.Google Scholar
[6]Berge, P. O., Some remarks on rating of fire risks. XIth International Congress of Actuaries, Paris, 1937.Google Scholar
[7]Berger, G., An attempt on the Subject: Profit goal and security loading in risk insurance. International Congress of Actuaries, Oslo, 1972.Google Scholar
[8]Berliner, B., Some aspects of standard deviation and variance loadings in reinsurance. Not published.Google Scholar
[9]Blandin, A., Bases techniques de l'assurance contre l'incendie. André Martel, 1956.Google Scholar
[10]Borch, K., The Safety Loading in Reinsurance Premiums. Skand. Aktuarietidskrift, XLIII (1960).Google Scholar
[11]Bühlmann, H., Mathematical Methods in Risk Theory. Springer Verlag, 1970.Google Scholar
[12]Centralstället för nordisk ömsesidig brandförsäkringsstatistik, Nordisk brandförsäkringsstatistik. 1951 Vol. 1, 1953 Vol. 4, 1956 Vol. 7, 1957 Vol. 10, 1963 Vol. 18, 1972 Vol. 30.Google Scholar
[13]Depoid, A., Applications de la statistique aux Assurances Accidents et Dommages. Editions Berger-Leurault, Paris, 1967.Google Scholar
[14]Einfeld, O., Beitrag zur Statistik der Gebäudefeuerversicherung. XIth International Congress of Actuaries, Paris, 1937.Google Scholar
[15]Eklund, H. J., Om den större eldfarligheten hos stora brandrisker. Nordisk Försäkringstidskrift, Vol. XII, 1932.Google Scholar
[16]Ferrara, G., Technical and statistical Aspects of the Italian Experience in the Field of Industrial Fire Risks Insurance. Lecture to the Swiss ASTIN-Group 18.11.70. Not published.Google Scholar
[17]Johansen, P., On Fire Insurance of Rural Buildings, International Congress of Actuaries, New York, 1957.Google Scholar
[18]Pestman, P. D., Grote Brandrisico's. Het Verzekerings-Archief, Deel XLVI, Oktober, 1969.Google Scholar
[19]Ramachandran, G., Fire Loss Indexes. Fire Research Note 839, September, 1970.Google Scholar
[20]Ramachandran, G., Extreme Value Theory and Fire Losses. Fire Research Note 910, January, 1972.Google Scholar
[21]Riebesell, P., Einführung in die Sachversicherungs-Mathematik. E. S. Mittler & Sohn, Berlin, 1936.Google Scholar
[22]Riebesell, P., Die Mathematik der Feuerversicherung. Berlin, 1926.Google Scholar
[23]Sawitsch, S. von, Der Einfluss der Dimensionen des Feuerrisikos auf den Prämiensatz. Zeitschrift für die gesamte Versicherungswissenschaft, 1907.Google Scholar
[24]Sergowskij, N., Theorie der Feuerversicherung. Erste Böhmische Rückversicherungsbank, Prag, 1931.Google Scholar
[25]Tribouillois, J., L'aggravation des risques par accumulation de valeurs et la tarification des magazins. Conférence Européenne des Sociétés d'Assurances contre I'Incendie.Google Scholar