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Solving an Integral Equation Arising from the Ruin Probability of Long-term Bonus-Malus Systems

Probability 2017-01-23 v1

Abstract

This article studies in detail the solution of an integral equation due to Rongming et al. [13]. The methods involve complex analysis. As an application, we find the ruin probability of a given Bonus-Malus system in a steady state. We obtain closed form solutions for the ruin probability in certain cases, and we characterize these cases. We give conditions for the Laplace transform of a ruin probability to extend to a meromorphic function in the complex plane, we prove a very general and almost sharp inequality of Lundberg type, and we extend our results to a doubly stochastic situation.

Keywords

Cite

@article{arxiv.1701.05570,
  title  = {Solving an Integral Equation Arising from the Ruin Probability of Long-term Bonus-Malus Systems},
  author = {Dan Kucerovsky and Amir T. Payandeh Najafabadi},
  journal= {arXiv preprint arXiv:1701.05570},
  year   = {2017}
}

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23Pages