On the Principle of Randomization in Finance and Insurance

In this talk we discuss the principle of randomization as a powerful tool in analyzing risk models. We study potential benefits for computational purposes, but particularly also for insight and simplifications on the modeling... [ view full abstract ]

In this talk we discuss the principle of randomization as a powerful tool in analyzing risk models. We study potential benefits for computational purposes, but particularly also for insight and simplifications on the modeling level. A number of illustrations of recent respective results are given. It is also studied how this line of reasoning can impact product design in finance and (re)insurance.