Copula Theory And Its Applications In Insurance Field

This article mainly researches the Copula theory and applies it in the field of insurance. Chinese insurance is just underway and have experienced several important transformation. And it is canonical and perfect day after day. Beside researching the Copula theory, this article applies it to the field of insurance, researching the relativity of several kinds of insurance. The main job what this article have done can be concluded into several items.1. this article looks back the developing history of Copula theory and introduces its researching status in quo and the production that have achieved in the application in financial time series. Then, it introduces the status quo of Chinese insurance and illuminates the problems existing in modern insurance market and the disparity between Chinese insurance market and the world's mature insurance market.2. Copula theory and its application in the measurement of relativity are lucubrated, several important Copulas are introduced and their specialties in measuring relativity are analyzed.3. this article probes into the application of Copula theory in the field of more than two variable's relativity and constitutes two kinds of correlations, including Imitating Kendall Correlation and n-Dimensional Tail Correlation. In this process, it gets the deduction that the distribution function of Copula.4. this article summarizes the methods of constituting the Copula model, including the parametric and nonparametric, and then simulates random variables from certain Copula and different methods to choose the best Copula.5. Based on the Copula theory and the methods of constituting the Copula model introducing before and using the insurance management data, this article analyzes the Chinese insurance market, excogitates the relativity between several kinds of insurance operation.