Citation:
Lee, W. Yan, & Liu, F. . (2018). Analysis of a dynamic premium strategy: from theoretical and marketingperspectives. Journal of Industrial and Management Optimization, 14(4), 1545-1577. Retrieved from https://www.aimsciences.org/article/doi/10.3934/jimo.2018020
Abstract:
Premium rate for an insurance policy is often reviewed and updated periodically according to past claim experience in real-life. In this paper, a dynamic premium strategy that depends on the past claim experience is proposed under the discrete-time risk model. The Gerber-Shiu function is analyzed under this model. The marketing implications of the dynamic premium strategy will also be discussed.
