TY - JOUR AU - Kasozi, Juma AU - Mayambala, Fred AU - Mahera, Charles Wilson PY - 2011 TI - Dividend Maximization in the Cramer-Lundberg Model using Homotopy Analysis Method JF - Journal of Mathematics and Statistics VL - 7 IS - 1 DO - 10.3844/jmssp.2011.61.67 UR - https://thescipub.com/abstract/jmssp.2011.61.67 AB - Problem statement: We used the Homotopy Analysis Method (HAM) to numerically compute the value function of the dividend payment in the basic insurance process. Approach: The process is a constant income stream from premiums which is subtracted a claim process of the Poisson type. Further, an allowance for payment of dividends to share holders was incorporated. Results: The case when the claims are exponential has an analytical solution. The HAM was then applied to the resulting Hamilton-Jacobi-Bellman equation and the numerical results obtained were compared to the theoretical results in order to check the validity of the method. Conclusion: The HAM was then applied to the model to check for other claim size distributions. The results obtained are very encouraging.