Determination of the optimal level of risk deduction by an insurance company
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We study the dependence of the insurance premium on the limit of liability of the insurance company with respect to individual risk. We determine the conditions under which the relative insurance surcharge will have a minimum. By choosing the optimal limit of liability corresponding to a minimum of insurance surcharge, the insurance company decreases the cost of insurance.
KeywordsMathematical Modeling Computational Mathematic Industrial Mathematic Optimal Level Individual Risk
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