TY - JOUR
T1 - A fair procedure in insurance
AU - Fragnelli, Vito
AU - Marina, Maria Erminia
PY - 2003/8/8
Y1 - 2003/8/8
N2 - We consider a random variable R, representing a risk that has to be insured by n companies and which a premium φ is assigned to. How should they share the risk and the premium in order to be better off? Under suitable hypotheses, there exists an optimal decomposition of the risk. According to this division, we develop a procedure that results in an allocation of (φ,R) that is efficient, individually rational and envy-free.
AB - We consider a random variable R, representing a risk that has to be insured by n companies and which a premium φ is assigned to. How should they share the risk and the premium in order to be better off? Under suitable hypotheses, there exists an optimal decomposition of the risk. According to this division, we develop a procedure that results in an allocation of (φ,R) that is efficient, individually rational and envy-free.
KW - Co-insurance
KW - Envy-freeness
KW - Fair division
KW - Optimal cooperation
KW - Premium calculation
UR - http://www.scopus.com/inward/record.url?scp=0141648427&partnerID=8YFLogxK
U2 - 10.1016/S0167-6687(03)00145-8
DO - 10.1016/S0167-6687(03)00145-8
M3 - Article
SN - 0167-6687
VL - 33
SP - 75
EP - 85
JO - Insurance: Mathematics and Economics
JF - Insurance: Mathematics and Economics
IS - 1
ER -