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  • Pricing Dynamic Insurance Risks Using the Principle of Equivalent Utility
    within the context of expected utility theory. • u = concave utility function of wealth of the buyer ... for complete coverage against the loss Y. u(w – P) = E[u(w – Y)]. • See Bowers et al. (1997, equation ...

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    • Authors: Virginia Ruth Young, Application Administrator
    • Date: Aug 2001
    • Competency: Technical Skills & Analytical Problem Solving
    • Publication Name: Actuarial Research Clearing House
    • Topics: Finance & Investments; Modeling & Statistical Methods