Joint insurance and capitalization costs.

*(English)*Zbl 0629.62103This paper studies the underpinnings of three related issues that arise in joint insurance. These are: capitalization, premium payments and relevance (or irrelevance) of insolvency. Principally, a dynamical model is constructed and investigated in terms of the impact of the policies a joint insurance firm may follow. A discussion relating to agency costs and re-capitalization in joint insurance, as well as a specific case are treated in detail.

##### MSC:

62P05 | Applications of statistics to actuarial sciences and financial mathematics |

##### Keywords:

diffusion approximation; capitalization costs; joint insurance; premium payments; insolvency; dynamical model; agency costs; re-capitalization
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\textit{C. S. Tapiero} and \textit{L. Jacque}, Insur. Math. Econ. 7, No. 1, 25--33 (1988; Zbl 0629.62103)

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##### References:

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