Abstract
AbstractFuzzy set theory is a recently developed field of mathematics, that introduces sets of objects whose boundaries are not sharply defined. Whereas in ordinary Boolean algebra an element is either contained or not contained in a given set, in fuzzy set theory the transition between membership and non-membership is gradual. The theory aims at modelizing situations described in vague or imprecise terms, or situations that are too complex or ill-defined to be analysed by conventional methods. This paper aims at presenting the basic concepts of the theory in an insurance framework. First the basic definitions of fuzzy logic are presented, and applied to provide a flexible definition of a “preferred policyholder” in life insurance. Next, fuzzy decision-making procedures are illustrated by a reinsurance application, and the theory of fuzzy numbers is extended to define fuzzy insurance premiums.
Publisher
Cambridge University Press (CUP)
Subject
Economics and Econometrics,Finance,Accounting
Cited by
76 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献
1. Fitting Insurance Claim Reserves with Two-Way ANOVA and Intuitionistic Fuzzy Regression;Axioms;2024-03-11
2. Pricing Life Contingencies Linked to Impaired Life Expectancies Using Intuitionistic Fuzzy Parameters;Risks;2024-02-02
3. Life settlement pricing with fuzzy parameters;Applied Soft Computing;2023-11
4. Fuzzy model for the risk classification of stroke;PROCEEDINGS OF THE 9TH INTERNATIONAL SYMPOSIUM ON INNOVATIVE BIOPRODUCTION INDONESIA ON BIOTECHNOLOGY AND BIOENGINEERING 2022: Strengthening Bioeconomy through Applied Biotechnology, Bioengineering, and Biodiversity;2023
5. Life Insurance Pricing and Reserving—A Fuzzy Approach;Springer Proceedings in Physics;2023