| dc.description.abstract | The area of study is on a Benevolent Scheme. Herethe insured
contributes premiums to the insuring company and is compensated in
the event of death of self or his or her dependant(s). The problem
normally experienced by a number of insuring companies is how to
determine the appropriate premium size to be paid by the insured. such
that the company does not incur losses.
In this study statistical models of a one-dependant and an m
dependant scheme, have been formulated.
Using the formulated models, the expected expenditure and
consequently profits or loses accrued to the insuring company have been
calculated. Consequently the appropriate premium size that will givethe
insurer modest profit has been determined.
Properties of Markov chains and Markov states have been applied
in determining the probabilities of transition from one state to another,
in n-steps (years). Steady state transition probabilities have also been
derived. Finally, correlation of the Exponential probability distribution
with the benevolent scheme modelhas been established | en_US |
