Ordering of risks: a review

In this review we will consider and discuss the most important partial orderings of riks, namely consistent partial ordering and net-stop-loss ordering. More especially we will study the consequencies of ordering of risks for the compound risk: S = X₁+X₂+···+X_N.The impact of orderings of claim size distributions (F_X) and claim intensities (F_N) on orderings of claim amounts (F_S) is examined. The consequencies of these kind of orderings on orderings of risks by means of premium calculation principles is also discussed.In this framework the influence of the dangerousness of distributions on orderings of risks is given.In analogy with the notion of stochastic dominance appearing in the theory of finance, the notion of stop-loss dominance is introduced.