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Value Insurance
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VIHAG for a New Line of Insurance Business
Gewei Ye, PhDEmail: [email protected]
VIHAG stands for Value Insurance for Homes with Android GPSHome
VIHAG isAn attempt to engage default probabilities in MBS to fix its vulnerability to mortgage defaultsA new financial instrument to create a large new financial market ~106 billionBacked by Android GPS technology and cloud computingExtending a sound algorithm of option pricingWith a solid new business model for a new type of insurance companies to generate enough sustainable revenue
What is VIHAG?
What is MBS? (see Ye 2011, “HFT Models”, Wiley, pp230)
VIHAG Architecture
How do default probabilities look at Android GPSHome?
Derived from LTV (loan to value) ratio
