Читать книгу Pricing Insurance Risk - Stephen J. Mildenhall - Страница 35

In this chapter, we define and classify risk. We explain different ways to use a random variable to represent a risky outcome. We introduce the Lee diagram and use it to represent expected loss, limited loss, and excess loss. We define a risk measure and explain how it codifies a risk preference. Finally, we characterize risk measures, discuss their applications in pricing and capital management, and consider their potential functional forms.