Computation of Interval Probability for Bankruptcy Procedure in Term Life Insurance With Uncertain Environment

In this paper, a new model is constructed by taking uncertain environment into consideration for the bankruptcy risk problems in term life insurance, where the mortality rate is regarded as an interval parameter and the net insurance policy is a random parameter. Formula for computing the interval probability of bankruptcy is obtained, an approximation method owing to Poisson distribution is studied. Since some important aspects have been taken into consideration in the new formulation, such as the accumulating interest of initial reserve, the entry of new customers at any time, the design of new grouping fashion and the uncertain environment, the result obtained in this paper is more practical than the existing models.