This study considers the risk management of insurance policies in line with the implementation of the new International Financial Reporting Standards 17. It applies the paid-incurred chain method to model the future unpaid losses by combining the information channels of both the incurred claims...

We apply a regime switching Markov chain model to determine bond prices. Our work builds upon the work of Thomas, Allen amp; Morkel-Kingsbury (2002) and Jarrow, Lando amp; Turnbull (1997). The interest rate process and credit rating migration process are considered. Our aim is to study the price...