Level premium rates as a function of initial capital

In Malinovskii (2012), level premium rate and level initial capital were used to construct solvent and equitable strategies in a multi-period game model of risk. Focused there was the level initial capital regarded as a function of the annual premium rate. With the prospective goal to study adaptive control strategies on falling competitive insurance markets, in this paper we focus on the level premium rate regarded as a function of initial capital.

► The article deals with level premium rates in Lundberg's-type model. ► They are used to construct sensible control strategies. ► The article yields approximations in a form suitable for calculations.