arXiv Open Access 2025

Opportunity Cost in Insurance

Jan Maelger
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Abstrak

We develop a formalism for insurance profit optimisation for the in-force business constraint by regulatory and risk policy related requirements. This approach is applicable to Life, P&C and Reinsurance businesses and applies in all regulatory frameworks with a solvency requirement defined in the form of a solvency ratio, notably Solvency II and the Swiss Solvency Test. We identify the optimal asset allocation for profit maximisation within a pre-defined risk appetite and deduce the annual opportunity cost faced by the insurance company.

Topik & Kata Kunci

Penulis (1)

J

Jan Maelger

Format Sitasi

Maelger, J. (2025). Opportunity Cost in Insurance. https://arxiv.org/abs/2511.13959

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Informasi Jurnal
Tahun Terbit
2025
Bahasa
en
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arXiv
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Open Access ✓