On the interplay between distortion, mean value and Haezendonck-Goovaerts risk measures

Marc Goovaerts, Daniël Linders, Koen Van Weert, Fatih Tank

Research output: Contribution to journalArticlepeer-review

Abstract

In the actuarial research, distortion, mean value and Haezendonck-Goovaerts risk measures are concepts that are usually treated separately. In this paper we indicate and characterize the relation between these different risk measures, as well as their relation to convex risk measures. While it is known that the mean value principle can be used to generate premium calculation principles, we will show how they also allow to generate solvency calculation principles. Moreover, we explain the role provided for the distortion risk measures as an extension of the Tail Value-at-Risk (TVaR) and Conditional Tail Expectation (CTE).

Original languageEnglish (US)
Pages (from-to)10-18
Number of pages9
JournalInsurance: Mathematics and Economics
Volume51
Issue number1
DOIs
StatePublished - Jul 2012
Externally publishedYes

Keywords

  • Distortion risk measure
  • Haezendonck-Goovaerts risk measure
  • Mean value risk measure
  • Risk measurement
  • Solvency requirements

ASJC Scopus subject areas

  • Statistics and Probability
  • Economics and Econometrics
  • Statistics, Probability and Uncertainty

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