摘要：In insurance pricing, it is convenient to split the total risk load for a policy
into the market risk load and the insurer specific risk load, and calculate
each separately. The market risk load represents an equilibrium price on a
competitive insurance market. A portfolio theory is developed along the line
of the classic CAPM, where a policy's market risk load is a function of its
systematic risk and the risk load of the entire insurance market. The model
is mathematically proved. As a corollary a formula for the risk adjusted
discount rate is obtained. Issues about the real world application and testing
are also discussed.
