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Autores principales: Furrer, Christian, Hornung, Philipp C.
Formato: Preprint
Publicado: 2025
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Acceso en línea:https://arxiv.org/abs/2512.13562
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author Furrer, Christian
Hornung, Philipp C.
author_facet Furrer, Christian
Hornung, Philipp C.
contents The classic semi-Markov disability model is expanded with individual and collective health claims to improve its explanatory and predictive power -- in particular in the context of group experience rating. The inclusion of collective health claims leads to a computationally challenging many-body problem. By adopting a mean-field approach, this many-body problem can be approximated by a non-linear one-body problem, which in turn leads to a transparent pricing method for disability coverages based on a lower-dimensional system of non-linear forward integro-differential equations. In a practice-oriented simulation study, the mean-field approximation clearly stands its ground in comparison to naïve Monte Carlo methods.
format Preprint
id arxiv_https___arxiv_org_abs_2512_13562
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Disability insurance with collective health claims: A mean-field approach
Furrer, Christian
Hornung, Philipp C.
Risk Management
Probability
The classic semi-Markov disability model is expanded with individual and collective health claims to improve its explanatory and predictive power -- in particular in the context of group experience rating. The inclusion of collective health claims leads to a computationally challenging many-body problem. By adopting a mean-field approach, this many-body problem can be approximated by a non-linear one-body problem, which in turn leads to a transparent pricing method for disability coverages based on a lower-dimensional system of non-linear forward integro-differential equations. In a practice-oriented simulation study, the mean-field approximation clearly stands its ground in comparison to naïve Monte Carlo methods.
title Disability insurance with collective health claims: A mean-field approach
topic Risk Management
Probability
url https://arxiv.org/abs/2512.13562