Visualization Tools for Insurance Risk Processes

Abstract

This chapter concerns risk processes, which may be the most suitable for computer visualization of all insurance objects. At the same time, risk processes are basic instruments for any non-life actuary – they are needed to calculate the amount of loss that an insurance company may incur. They also appear naturally in rating-triggered step-up bonds, where the interest rate is bound to random changes in company ratings, and catastrophe bonds, where the size of the coupon payment depends on the severity of catastrophic events.