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Decision Theory Based Models In Insurance And Beyond, Raymond Ye Zhang

Electronic Thesis and Dissertation Repository

Everyday, we make difficult choices under uncertainties. The decision making process becomes even more complicated when more agents get involved: one must consider their interactions and conflicts of interest because the final outcome is based not only on an agent's decision but on everybody's.

In insurance industry, companies try to avoid making large claim payments to policyholders (commonly known as insureds) by purchasing reinsurance policies from reinsurance companies (the reinsurer). Each policy details conditions upon which the reinsurer pays a share of the claim to the insurance company (also known as the cedent or the insurer). To reach an agreement, …