Often, actuaries replace a group of heterogeneous life insurance contracts (different age at policy issue, contract duration, sum insured, etc.) with a representative one in order to speed the computations. The present paper aims to homogenize a group of policies by controlling the impact on Tail-VaR and related risk measures. © 2015 Elsevier B.V. All rights reserved.

Our account begins in 1931/1932, when one of the fathers quantum theory, Erwin Schrodinger, proposed a Gedankenexperiment to comprehend propagation cloud Brownian particles. He [1], [2] inference problem identify most likely evolution large collection particles as they traverse between two endpoints time- their distribution being measured and available at endpoints. This random evolution, now k...