Applications of Operations Research in Insurance Risk Management

This paper explores the use of operations research in the insurance industry. Our research has attempted to point out the various approaches of operations research that can be used to solve insurance risk management-related problems. Having provided a general overview of all the techniques applied, we then focused on the three most famous OR techniques, which are: Linear Programming, Goal Programming, and Monte Carlo Simulation. These techniques are explained in detail, their areas of application along with their limitations associated. Discussion of our findings concludes the paper.