Premium Based on Mixture Utility


Spirkova J.

9th International Conference on Flexible Query Answering Systems (FQAS 2011), Ghent, Belgium, 26 - 28 October 2011, vol.7022, pp.354-363 identifier

  • Publication Type: Conference Paper / Full Text
  • Volume: 7022
  • City: Ghent
  • Country: Belgium
  • Page Numbers: pp.354-363

Abstract

Aggregation functions and utility functions belong to very interesting parts of modern decision making theory. We develop basic concept of the connection of aggregation functions theory and utility theory to determine gross annual premium in general insurance. We introduce specific values of the gross annual premium on the basis of aggregation of the person's utility functions which were determined empirically based on a short personal interview. Moreover, by specific utility function we determine minimal gross annual premium acceptable for the insurer.