Research On House Mortgage Insurance Under The Default Risk

In the industry of insurance, traditional products remain popular, but theirshare in the market are decline sharply. Instead, non-traditional insurancesare designed and divide the share, for instance, loan insurance and tax-delayedinsurance. Obviously, the object is no longer limited life or properties. Thispaper accept the tendency of development, focusing on the house mortgageinsurance. To be honest, this kind of products are existent, but it s merelyin the properties and life area. The innovation of this paper are introducingit into credit insurance through different method of research.This paper mainly discussed four aspects: the initial pricing, the empiricalpricing, reserve valuation and pricing for re-insurance. The initial pricingfor the initial time is applied when there are absent of empirical data.we needto use the information of house price to derive the price of the product ofinsurance by option methods. At the end of this module,paper will add insurancefees and other expense into premium called gross premium. In the module ofempirical pricing which are used when insurance obtain sufficient data, premiumis modified by statistical method. At the end of this module, paper uses creditmethod connecting empirical price and initial price.At the third module, paperdiscuss reserve which is the most important liabilities useing method ofpolicy-premium, BF method and chain-ladder method.At the fourth module, paperwill analyze re-insurance which can be decline the risk.