Abstract

In developing countries such as Malaysia, the avai lability of reinsurance arrangements provides sever al advantages to the primary insurers such as keeping their risk exposures at prudent levels by having th eir large risk exposures reinsured by another company, meeting client requests for larger insurance coverage by having their li mited financial sources supported by another company, and acquiring underwriting skills, experience and ability of handling co mplex claims by depending on another company for such services. This paper aims to model insurance claims and assess t he insolvency probability of reinsurance treaties. Claims data wa s obtained from one of the leading insurers in Mala ysia and R programming with actuar package is used to compute the probabil ity of insolvency. ISSN: 1804-0527 (online) 1804-0519 (print) PP. 62-64

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