Date of Award


Degree Type


Degree Name

Doctor of Philosophy


The rapid growth in the number of people insured against the economic consequences of disabilities and the recent excitement generated by the concept of risk sharing as an alternative to the purchasing of group insurance coverage, has resulted in new frontiers for research in the field of risk management. To contribute to this field of study, this research is aimed at providing tools and techniques for the assessment of the risks involved in group long-term disability plans. To this end the research attempted to determine the probability distributions of the aggregate benefits and the reserve requirements of long-term disability plans.;Two models, one based on the individual risk theory, the other based on the collective risk theory, were developed for each of the above two variables. The models determined the moments of distributions that were subsequently used to determine the target distributions. The construction of the models was flexible enough to accomodate changes of plan parameters, such as waiting and benefit periods, as well as changes in risk-sharing arrangements. The numerical results obtained via the two models, as well as results from the simulation model, were contrasted and found to support each other. An illustration of risk analysis in an actual situation is provided and the need for future research is also discussed.



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