An insurance company must select a reinsurance offer from a number of available ones. To this purpose, an assessment of the pros and cons of each offer needs to be done. Simulation models must be developed for this assessment, and non-quantitative issues need to be sorted out.
To teach about pricing of insurance products as risk management products; to show how Monte Carlo simulations can be used for modeling for risk management; to understand insurance and re-insurance issues when it comes to selecting such products/policies.
- Risk Management
- Monte Carlo Simulation