This paper studies the stochastic modeling of market drawdown events and the fair valuation of insurance contracts … asset value. We first consider a vanilla insurance contract whereby the protection buyer pays a constant premium over time … of the drawdown time, which will serve as the building block for drawdown insurance with early cancellation or drawup …

To meet future liabilities general insurance companies will set-up reserves. Predicting future cash-flows is essential … literature about stochastic loss reserving for the general insurance business has been developed. Apart from few exceptions, all … underlying, much more detailed data base that is available to the insurance company. We refer to this data set at individual …

Direct compensation or the direct reimbursement scheme is an indemnity insurance method that many European and American … countries use to manage motor liability claims in which the driver that suffers an accident is paid by his/her insurance company …