content_image/299859.jpg
<img src='content_image/299859.jpg'>

and computationally cheap upper bound may be of more practical use than an approximation. Section 6.1 also discusses indirect ways to assess the compression error, using the upper bounds. 

Monte Carlo simulation is an attractive alternative to Panjer recursion, because it comes with a simple assessment of accuracy, is easily parallelis- able, and the sample drawn can be used to calculated other quantities of interest for insurers like the net aggregate loss and reinsurance recovery costs. 

## 5 TRACTABLE SPECIAL CASES 

In this section we consider three tractable special cases. 

