Many public goods like dams, fire departments, and lighthouses do not provide direct utility but act more as insurance devices against floods, fire, and shipwreck. They either diminish the probability or the size of the loss. We extend the public good model with this insurance aspect and generalize Samuelson’s efficient allocation rule when self-insurance and self-protection expenditures are pu...

Two-part models are important to and used throughout insurance actuarial science. Since is required for registering a car, obtaining mortgage, participating in certain businesses, it especially that the price policies fair non-discriminatory. Black box can make very difficult know which covariates influencing results, resulting model risk bias. SHAP (SHapley Additive exPlanations) values enable...

When an elaborate operational and financial plan is prepared for the followinp year. including assumptions regarding prospective rate changes. goals are made with regard to premium levels and profitability. Ifcertain assumptions such as catastrophe loads. loss trends and the effects ofvariability arc not explicitly linked to the assumptions used for ratemaking on the product and state Icvel. a ...

The Florida Public Hurricane Loss Model (FPHLM) developed in the State of Florida offers an open, public and effective tool for the government to regulate the insurance ratemaking process. It is also open to public scrutiny and provides an understandable baseline to check the windstorm insurance rate. Currently, the model has finished its development on probabilistic assessment of insured hurri...

Large insurance losses happen infrequently, but they happen. In this paper we present the standard distribution models used in fire, wind–storm or flood insurance. We also present the classical Cramér-Lundberg model for the total claim amount and some more recent extensions. The classical insurance risk measure is the ruin probability and we give a full account of the ruin event in such models....