Prices in the Property and Casualty Reinsurance market are known to undergo significant fluctuations. In order to understand the reasons for these fluctuations a simulation model was built that replicates relevant features of the reinsurance market: a limited number of market participants are competing, low product differentiation, volume constraints for each market participant and discrete volume decisions based on estimated rather than actual market prices. Despite a number of simplifications the model captures the current market dynamics. In a further development the model was made interactive allowing actual “players” to take the role of the reinsurance companies and make the individual volume decisions based on current financials and the market history. The model was built using agent based instead of system dynamics modeling techniques particularly to simplify implementation of critical discrete events and to create a simple to understand structure. We will discuss the model, the trade-offs between the Agent-based and System-dynamics approach as they applied to this model and share some experience in communicating the model structure with the business owners.

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Date created

• 2005 July 17-2005 July 21

Type

• Document

Processing Activity

• Processing documentation available at: https://wiki.albany.edu/display/SCA/Processing+Ingested+Digital+Files

License

• Creative Commons BY-NC-ND Attribution-NonCommercial-NoDerivs 4.0 International

  
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ITEM CONTEXT

Part of

cc5bb0ac12a5b68b26b1583548898dae

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Part of

3c582e6f5cf305ef0030c7471b499022

Scope and Contents

Part of

23d738ba88f8333bc39725f9cb5bd0b8

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Collection

System Dynamic Society Records

Scope and Contents

Collecting area

• This collection is part of the University Archives