Modeling Issues of the Claim Process and Insurance Risk

[Raeva Elitsa; Раева Елица]; [Pavlov Velizar; Павлов Велизар]This work presents a brief overview of some proper statistical distributions for modeling of claims and risk in general insurance. Applications of normal approximation, normal power transformation and power transformation for modeling the number and the size of claims have been considered. Some problems in terms of modern risk theory are described and their reformulation in the actuarial practice are made. There are numerical examples to determine the amount of insurance premiums in order to limit to one percent the probability of insolvency. Some comparisons were made. 2010 Mathematics Subject Classification: 62C42, 62G22