Abstract
In his discussion of the author’s paper, Ira Robbin takes issue with several aspects of the proposed risk load formula. In this response, the author seeks to clarify some of these differences and expand upon the role of reinsurance in the pricing of high limit policies. In particular, he shows how the risk load formula can be used to develop an efficient reinsurance program.
Keywords: Reinsurance Research - Risk Loads, Profitability, Profit Factor, Rate of Return, Risk
Volume
LXXX
Page
396-415
Year
1993
Categories
Actuarial Applications and Methodologies
Ratemaking
Increased Limits
Financial and Statistical Methods
Risk Pricing and Risk Evaluation Models
Traditional Risk Load (Profit Margin);
Business Areas
Reinsurance
Publications
Proceedings of the Casualty Actuarial Society
