Hostname: page-component-78c5997874-xbtfd Total loading time: 0 Render date: 2024-11-07T20:15:53.758Z Has data issue: false hasContentIssue false
  • English
  • Français

Dynamic response of insurance systems with delayed profit/loss sharing feedback to isolated unpredicted claims

Published online by Cambridge University Press:  20 April 2012

L. A. Balzer  and
S. Benjamin
Get access Rights & Permissions [Opens in a new window]

Summary

A mathematical model of the dynamic behaviour of an insurance system with delayed profit/loss sharing feedback is developed. The model is then subjected to a disturbance input consisting of an isolated group of unpredicted claims and the dynamic responses of cash flow and accumulated cash flow determined. Increasing delays are seen to lead first to undesirable oscillatory responses and eventually to instability. where the responses become unbounded. Such behaviour is noted to be independent of the type of business and to be a property of the feedback mechanism and not related to the type of disturbance input.

Type
Research Article
Information
Journal of the Institute of Actuaries , Volume 107 , Issue 4 , December 1980 , pp. 513 - 528
Copyright
Copyright © Institute and Faculty of Actuaries 1980

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Cadzow, J. A. (1973). Discrete-Time Systems—An Introduction with Interdisciplinary Applications, Prentice-Hall.Google Scholar
Dorf, R. C. (1970). Modern Control Systems, Addison-Wesley.Google Scholar
Ogata, K. (1970). Modern Control Engineering. Prentice-Hall.Google Scholar