QUANTITATIVE METHODS FOR DETERMINING PREMIUM RATES IN TRANSPORTATION INSURANCE UNDER UNCERTAINTY

Abstract

In decision-making processes, including insurance decision-making processes, decisions are usually made in the circumstances of uncertainty or absence of information or knowledge of a particular problem, so it is necessary to conduct different assessments and find different solutions for the problem. Actuaries and underwriters are faced with many problems in the process of quantifying risk in conditions of uncertainty, where classical techniques are difficult to apply because of a large number of unknown parameters. Given the specificity of transportation insurance, the technique of fuzzy mathematics and the possibility theory can be used to a great extent in various transportation insurance lines, including the segment of determining the premium rates.