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A note on large deviations in life insurance

Published 3 Sep 2020 in math.PR and q-fin.RM | (2009.01644v1)

Abstract: We study large and moderate deviations for a life insurance portfolio, without assuming identically distributed losses. The crucial assumption is that losses are bounded, and that variances are bounded below. From a standard large deviations upper bound, we get an exponential bound for the probability of the average loss exceeding a threshold. A counterexample shows that a full large deviation principle does not follow from our assumptions.

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