World Scientific Publishing Company Insurance Planning Models: Price Competition And Regulation Of Financial Stability: 2 (Advances In Statistics, Probability And Actuarial Science)

Insurance Planning Models: Price Competition and Regulation of Financial Stability is an exciting new book that takes readers inside the secrets of internal organization of the modern general insurance business. Many people know that it is subject to intensive state regulation, whereby the purpose is to maintain long-term efficiency, honesty, security and stability in the interest and for the protection of policyholders. However, except for knowing that the insurance system is regulated by intensive calculations, that the insurance companies have different positions on the market, that they pursue different goals and even compete with each other, and that one of the tools of this competition is the policy price, not so many people know how to achieve these deserving goals. In developing quantitative recommendations and directives to competing insurers, regulators rely on certain models. In the 1900s, such models were proposed. They were useful for an insight into the probabilistic nature of the insurance process, but not for direct application to practically meaningful problems of insurance regulation. This book is your guide to the rigorously constructed long-term dynamic models with the aim to improve regulatory methods and develop quantitative recommendations using both analytical calculations and computer simulation. It is addressed to a wide range of readers, including interested policyholders, economists whose interest lies in insurance management and regulation, and mathematicians wishing to expand the scope of application for their knowledge. This book is devoted to certain issues that are either not sufficiently presented, or even absent in the literature. It is an attempt to penetrate from the standpoint of mathematical modeling into the goals which face insurance regulators and contending company managers for preventing insolvencies, or even crises pertinent to badly regulated complex reflexive systems. It offers rigorous probabilistic models of long-term insurance business based on the laws of mass phenomena. They mitigate deficiencies of oversimplified risk models. The book presents advances in probabilistic techniques designed to seek quantitative, rather than qualitative, directives and recommendations regarding safe control aiming to achieve different business goals. About the Author <p><strong>Vsevolod K Malinovskii</strong> is chief research fellow at the Central Economics and Mathematics Institute (CEMI) of the Russian Academy of Sciences. He specializes in Applied Probability and Mathematical Statistics. After graduating from the Moscow State University in 1978, he began his scientific career in Steklov Mathematical Institute, where he worked until 2006. He delved into Bayesian statistics and in asymptotic methods in hypothesis testing for Markov chains, with a special attention to limit theorems for Harris recurrent Markov chains. Having obtained in 1994 a series of new results for finite time ruin probability, he developed an interest in Risk Theory; this grew into an interest in Actuarial Science. He was a speaker at the International Congresses of Actuaries in Birmingham (1998), in Cancún (2002), and in Paris (2006), as well as in a number of International ASTIN Colloquia. In 2001, he became an Individual Member of International Actuarial Association, and stayed there until 2004 (this category of membership was cancelled in 2004). Serving the actuarial profession, he translated in Russian and edited a number of famous professional books, such as <em>Automobile Insurance: Actuarial Models</em> and <em>Bonus-Malus Systems in Automobile Insurance</em> by J Lemaire, <em>Actuarial Mathematics</em> by N Bowers, <em>et al.</em>, and <em>Financial Economics: with Applications to Investments, Insurance and Pensions</em> by Phelim P Boyle, <em>et al.</em> Besides lecturing in a number of universities in Moscow, he was invited in 1993 and in 1998 to lecture in Laboratory of Actua