The Natural Sets of Wang's Premium Principle

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Abstract

Recently, Wang's premium principle (Wang, 1995, 1996) has been discussed by many authors. Considerable attention has been given to the conditions under which Wang's premium principle can be reduced to the standard deviation premium principle. In this paper, we have got two results on this problem. One is that the natural set is a location-scale family if Wang's premium principle can be reduced to the SD premium principle for all surjective distortions. The other is that the natural set is a location-scale family for all power distortions.

Original languageEnglish
Pages (from-to)139-145
Number of pages7
JournalASTIN Bulletin
Volume31
Issue number1
DOIs
StatePublished - May 2001

Keywords

  • Laplace transformation
  • Premium principle
  • distortion function
  • location-scale family
  • natural set
  • proportional hazard transformation

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