Abstract
The use of safety loadings for insurance premiums is well documented by insurance theory and practice. Using risk theory one can demonstrate that increasing the safety loading in the premium will decrease the probability of insolvency due to variation of incurred losses. However, many recognize that there are additional risks which are faced by insurance companies. Thus safety loadings for these additional risks may be justifiable.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
