Actuarial Pricing Theory And Its Applications In Group Life Insurance

With the development of insurance business, pricing of life insurance plays an important role in its originality. The insurance price is different with the general commodity price. During pricing of group insurance product, insurance company should not only considering the competition and the demand, but also considering whether the insurance premium will sufficiently support the future compensate pays. In addition, the life insurance with stochastic interest is a hotspot in present. This article elaborated the pricing of insurance, proposed a new pricing method, improved asset share pricing method, and applies it in a concrete example. The main works are summarized as follows:1. The status and trend of international group insurance market in our country is studied. The history of insurance actuarial science and pricing of insurance is reviewed.2. The ordinary methods of insurance pricing, including its advantages and disadvantages are summarized. A group insurance pricing model based on supply and demand analysis is presented. This price is a market price that can be obtained when supply and demand of insurance is balanced.3. The No-Claim Discount model and credibility theory are taken into the pricing of group life insurance with its application. These introductions developed the pricing method of group life insurance.4. Through studying classical asset share pricing method, the life insurance with stochastic interest is presented. Compared with the old method, the new way is more practical for considering of the stochastic changes of interest. This paper also presents an application of asset share pricing method, and the relationships of some important factors.