kaal:claim:3396542-020

The margin m is stipulated as the premium per dollar in excess of the probability of a claim occurring at some point in the policy's life, and this margin is the quantity that must exceed a derived threshold for the design to hold.

Source quote, verbatim

Thus, m is the amount of premium per dollar in excess of the probability of a claim on the policy sometime during its life.

From

Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Decentralized Underwriting (2019), V. MODEL, 2. Value of Tokens in Steady State, p. 17
https://ssrn.com/abstract=3396542 · source PDF

Cite as

Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Decentralized Underwriting (2019). SSRN: https://ssrn.com/abstract=3396542

Classification

definitionalsupport: arguedinstitutional-design

Verify

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