2003/05/04 by Amir H. Darooneh, Darooneh, Amir H.
Decision Sciences · Economics, Econometrics and Finance · Physics and Astronomy · Social Sciences · #FOS: Economics and business #FOS: Physical sciences #Forecasting Techniques and Applications #Insurance, Mortality, Demography, Risk Management #Pricing of Securities (q-fin.PR) #Probability and Risk Models #Statistical Mechanics (cond-mat.stat-mech) #cond-mat.stat-mech #q-fin.PR
paper · pdf · doi:10.48550/arxiv.cond-mat/0305062
10 pages, 5 figures
openalex publication_date 2003/05/04 · arxiv created 2004/04/06 · arxiv updated 2009/11/30 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
We consider the insurance company as a physical system which is immersed in its environment (the financial market). The insurer company interacts with the market by exchanging the money through the payments for loss claims and receiving the premium. Here in the equilibrium state we obtain the premium by using the canonical ensemble theory, and compare it with the \it Esscher principle, the actuaristic well known formula for premium calculation. We simulate the case of automobile insurance for quantitative comparison.