Property Insurance Decision-making on the Basis of Utility Functions

Environment. Technology. Resources: Proceedings of the 14th International Scientific and Practical Conference. Vol.2 2023
Oleg Uzhga-Rebrov, Gaļina Kuļešova

Property and other valuables insurance is widespread all over the world. An insurance company assumes the risk of damage or total destruction of the insured property. When this kind of damage or destruction is established, the company pays its client compensation (insurance premium) up to the amount specified in the insurance contract. For his part, the insured must pay a certain amount to the firm for the provision of insurance services. In any property insurance process, the question arises as to whether it is appropriate to insure the property for the price offered by the firm. The paper considers an approach to solving this problem based on expected utility theory.

Keywords
Expected utility, insurance policy, insurance risks, risk attitude
DOI
10.17770/etr2023vol2.7308
Hyperlink
https://journals.rta.lv/index.php/ETR/article/view/7308

Uzhga-Rebrov, O., Kuļešova, G. Property Insurance Decision-making on the Basis of Utility Functions. In: Environment. Technology. Resources: Proceedings of the 14th International Scientific and Practical Conference. Vol.2, Latvia, Rēzekne, 15-16 June, 2023. Rēzekne: Rezekne Academy of Technologies, 2023, pp.99-104. ISSN 1691-5402. e-ISSN 2256-070X. Available from: doi:10.17770/etr2023vol2.7308

Publication language
English (en)