Reinstatement premium for one year — reinstatement

With layer loss L at 100% after annual terms, premium * sum(rate_k * min(max(L - k * limit, 0), limit) / limit) over k = 0, 1, ...; zero when reinstatements are free. Pro rata as to time, the limit each loss uses up is charged at 1 - t, its time's share of the year left.

Usage

reinstatement_premium(layer, losses, ...)

Arguments

layer: An xol_layer.
losses: Numeric vector of one year's losses, in time order.
...: Unused; for methods.
times: For a layer pro rata as to time, each loss's time as the fraction of the year elapsed; without them its premium is NaN.

Value

A single number.

Examples

l <- xol_layer("10x10", 10, 10, premium = 2, reinstatement_rates = c(1, 0.5))
reinstatement_premium(l, c(15, 25))
#> [1] 2.5