Solvency Evaluation Model of Insurance Company Based on Stochastic Differential Equation
Solvency assessment is the core content of insurance supervision. In this paper, from the perspective of capital flow, the insurance company’s capital flow is regarded as a dynamic system, the stochastic differential equations model is established to describe its flow characteristics, and the existe...
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| Format: | Article |
| Language: | English |
| Published: |
Wiley
2021-01-01
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| Series: | Complexity |
| Online Access: | http://dx.doi.org/10.1155/2021/5594619 |
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| _version_ | 1832547691175870464 |
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| author | Kai Wang Ling Zhu |
| author_facet | Kai Wang Ling Zhu |
| author_sort | Kai Wang |
| collection | DOAJ |
| description | Solvency assessment is the core content of insurance supervision. In this paper, from the perspective of capital flow, the insurance company’s capital flow is regarded as a dynamic system, the stochastic differential equations model is established to describe its flow characteristics, and the existence of positive equilibrium point of the system is proved, as well as the conditions of stability at equilibrium point, that is, the requirements of the insurance company’s solvency. Furthermore, by using the numerical simulation method, we get the strategy of insurance companies to deal with the solvency shortage when facing the change of external environment, and the strategy of insurance company to deal with solvency shortage is obtained. |
| format | Article |
| id | doaj-art-2619b09f62d64fec817635967adda1b6 |
| institution | Kabale University |
| issn | 1076-2787 1099-0526 |
| language | English |
| publishDate | 2021-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Complexity |
| spelling | doaj-art-2619b09f62d64fec817635967adda1b62025-02-03T06:43:45ZengWileyComplexity1076-27871099-05262021-01-01202110.1155/2021/55946195594619Solvency Evaluation Model of Insurance Company Based on Stochastic Differential EquationKai Wang0Ling Zhu1School of Science, Anhui Agricultural University, Hefei 230036, ChinaSchool of Science, Anhui Agricultural University, Hefei 230036, ChinaSolvency assessment is the core content of insurance supervision. In this paper, from the perspective of capital flow, the insurance company’s capital flow is regarded as a dynamic system, the stochastic differential equations model is established to describe its flow characteristics, and the existence of positive equilibrium point of the system is proved, as well as the conditions of stability at equilibrium point, that is, the requirements of the insurance company’s solvency. Furthermore, by using the numerical simulation method, we get the strategy of insurance companies to deal with the solvency shortage when facing the change of external environment, and the strategy of insurance company to deal with solvency shortage is obtained.http://dx.doi.org/10.1155/2021/5594619 |
| spellingShingle | Kai Wang Ling Zhu Solvency Evaluation Model of Insurance Company Based on Stochastic Differential Equation Complexity |
| title | Solvency Evaluation Model of Insurance Company Based on Stochastic Differential Equation |
| title_full | Solvency Evaluation Model of Insurance Company Based on Stochastic Differential Equation |
| title_fullStr | Solvency Evaluation Model of Insurance Company Based on Stochastic Differential Equation |
| title_full_unstemmed | Solvency Evaluation Model of Insurance Company Based on Stochastic Differential Equation |
| title_short | Solvency Evaluation Model of Insurance Company Based on Stochastic Differential Equation |
| title_sort | solvency evaluation model of insurance company based on stochastic differential equation |
| url | http://dx.doi.org/10.1155/2021/5594619 |
| work_keys_str_mv | AT kaiwang solvencyevaluationmodelofinsurancecompanybasedonstochasticdifferentialequation AT lingzhu solvencyevaluationmodelofinsurancecompanybasedonstochasticdifferentialequation |