Insurance Price With Investment By Back Stochastic Differential Equation

Insurance investment is the key of fund management, especially is the base of insurance company. After joining in WTO, national insurance must be impulsed by the foreign insurance. But it is also a chance for us to learn advanced technology of risk management, and develop ourselves.This paper researches on effect of investment with reserve for insurance price by theory of backward stochastic differential equation. Model the investment with backward stochastic differential equation and get the result. It provides some basis and more practical significance for insurer to adjust the price. At last, analyze the feasibility by the example. There is a price advantage by contrasting this method with other traditionary ones. So it can increase strength of insurance company.