The Behavioral Approach to Insurance Policy’s Quantitative Variables Optimum Point

Neglecting the qualitative aspect of risk in actuarial analysis on one hand and lack of validation about the subjective value of premium determination in insurance companieson the other hand, were two incentives to do some researches on this subject.By using behavioral finance in actuarial calculations as a solution to these two issues, ithas been derived an innovative win-win model with integration of these two literatures(behavioral economics and actuarial analysis), which works to optimize the premiumamount and making more attractive deals (wining of insurance companies); also the model can help to make better policies to control many individual biases that make the clients to behave riskier than their condition allows (wining of the two sides of an insurance contract).The paper structure is quite normal. it begins with an introduction that is trying toprepare the readers mind for a brand new integration in two literatures and it has threeliterature reviews, inside, each of which explicates the risk concept with a specific per-spective, then comes the model and after that we have a final and necessary review about the option contracts vs. investment insurance, and of course the conclusion in the end.

کلیدواژه ها:

Behavioral Economics ، Insurance Policy ، Premium ، Actuarial Analysis ، Hedging ، Investment Insurance ، Behavioral Finance