The Discussion On Optimization Of Reinsurance Models

Nowadays, the theory about martingale, stop-time, and the renewal recursive technique has been widely applied in the risk theorems research. Many scientists have used time-series to study the bounds of ruin probability under various complicated models and have obtained many great properties and conclusions.In actuarial science, almost all the research on the bounds of ruin probability which have been done has used the theory of martingale, stop-time, and the renewal Recursive technique. Recently, with the studying of the limit theorems of probability theory, we found that these theorems can be applied in the risk theorems research. So we can get the bounds of ruin probability with a new method.In the first part of this article, we have improved some inequations in the limit theorems of probability theory and have applied them to get the bounds of ruin probability.In fact, much work has been done in insurance research .But reinsurance which is still a new field to us is becoming more and more important. So it is interesting and significant to study reinsurance. In the second part of this article, we have discussed the properties about reinsurance.The major functions of reinsurance are dispersing risk and boosting up the fund. So many scientists have studied the option methods about dispersing risk. But the classical models are usually based on the efficient reinsurance assumption, that is, they consider that reinsurance disperses risk surely.But in fact, that's not true in any condition. So fist we discuss that in which condition reinsurance can disperse risk. Then we discuss the option retention considering the benefit of both insurance company and reinsurance company, not only just one of them. At last we study how much reservation can be reduced under the same ruin probability.