Rahman, Hamid; Yung, Kenneth - In: Journal of Insurance Issues 22 (1999) 1, pp. 61-77
This paper uses a numerical experiment to observe the behavior of the variance of total losses of an insured group, as the group is continually divided and subdivided. In the tradition of Rothschild and Stiglitz (1976) only loss frequency is analyzed. The results of the experiment suggest that...