[CCICADA-announce] The Command, Control, and Interoperability Center for Advanced Data Analysis (CCICADA), a Homeland Security Center of Excellence Seminar

[Linda Casals]

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The Command, Control, and Interoperability Center for Advanced Data
Analysis (CCICADA), a Homeland Security Center of Excellence Seminar
               
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Title: Deductible Insurance and the Transfer of Risk

Speaker: Christopher Gaffney, Rutgers Center for Operations Research

Date: Thursday, April 10, 2014 11:00 am - 12:00 pm 

Location: CoRE Bldg - 4th Floor, CoRE Conference Room 433, Rutgers
          University, Busch Campus, Piscataway, NJ 

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Abstract: 

The theory of optimal insurance coverage has been widely studied since
the early 1960's, typically appealing to utility theory or its
generalizations for an objective function. We consider an insurance
model falling outside of this tradition, concentrating on the
variance-reducing property of insurance. As such, we consider a
mean-variance approach, providing optimality conditions for the
deductible and coverage limit and showing the relationship of these
conditions with the premium. Additionally, we consider the Insurance
System (the system defined by the risk-bearers, the insured and the
insurer), proving that the variance of this system is less than the
variance that would be experienced in the uninsured case.