The Aversion Integral of Actuarial Risk Dynamics in Nigeria

Abstract

The aim of this work is to find a new condition to compute aversion to risk integral which solves the associated second order differential equation with boundary conditions. The evaluation of an individual aversion to risk forms an integral part of expert‟s investment opinion. The evaluation technique of general insurance is theoretically deficient in formation and deepenedscientific methodologies. Investors‟ total wealth is usually categorizedinto assets which are assigned to short term project and free asset which assignment is subject to indefinite interval of time. The insufficient risk methodologies looks appropriate for the former category while the latter category is distributed in line with individual risk aversion intensity.