Economic Themes (2009) 47 (4) 4, 65-74

MATHEMATICAL MODELS OF INSURANCE AND REINSURANCE


Žarko Popović

Abstract: The topic of the paper is the insurance and reinsurance of enterprises’ capital. The notion of capital insurance i.e. capital reinsurance, their classification, as well as the mathematical models used in insurance and reinsurance are discussed here. Reinsurance represents the most efficient form of risk sharing among insurance companies.

Keywords:  insurance; reinsurance; risk; retention; mathematical models; retention function; compensation function

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