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The present work concerns the finite-time ruin probabilities for several bidimensional risk models with constant interest force and correlated Brownian motions.} Under the condition that the two Brownian motions $\{B_1(t), t\ge 0\}$ and…

Probability · Mathematics 2023-06-29 Dan Zhu , Ming Zhou , Chuancun Yin

We analyze the probability of ruin for the {\it scaled} classical Cram\'er-Lundberg (CL) risk process and the corresponding diffusion approximation. The scaling, introduced by Iglehart \cite{I1969} to the actuarial literature, amounts to…

Optimization and Control · Mathematics 2020-06-18 Asaf Cohen , Virginia R. Young

We consider a modification of the dividend maximization problem from ruin theory. Based on a classical risk process we maximize the difference of expected cumulated discounted dividends and total expected discounted additional funding…

Portfolio Management · Quantitative Finance 2019-01-21 Josef Anton Strini , Stefan Thonhauser

We investigate the Levy insurance risk model with tax under Cram\'er's condition. A direct analogue of Cram\'er's estimate for the probability of ruin in this model is obtained, together with the asymptotic distribution, conditional on ruin…

Probability · Mathematics 2018-06-19 Philip Griffin

The classical Cramer-Lundberg model was the first attempt to describe the financial condition of the insurance company. The incomes were approximated by a steady stream of money, insurance payments were not limited and could take any value…

Probability · Mathematics 2022-02-09 B. H. Jasiulis-Gołdyn , A. Lechańska , J. K. Misiewicz

Let $(W_1(s), W_2(t)), s,t\ge 0$ be a bivariate Brownian motion with standard Brownian motion marginals and constant correlation $\rho \in (-1,1).$ Parisian ruin is defined as a classical ruin that happens over an extended period of time,…

Probability · Mathematics 2021-06-28 Konrad Krystecki

We study the asymptotic of the ruin probability for a process which is the solution of linear SDE defined by a pair of independent L\'evy processes. Our main interest is the model describing the evolution of the capital reserve of an…

Probability · Mathematics 2018-01-04 Yuri Kabanov , Serguei Pergamenchtchikov

This paper presents some new results on Parisian ruin under Levy insurance risk process, where ruin occurs when the process has gone below a fixed level from the last record maximum, also known as the high-water mark or drawdown, for a…

Probability · Mathematics 2018-06-07 B. A. Surya

This paper studies a dynamic optimal reinsurance and dividend-payout problem for an insurance company in a finite time horizon. The goal of the company is to maximize the expected cumulative discounted dividend payouts until bankruptcy or…

Mathematical Finance · Quantitative Finance 2022-06-28 Chonghu Guan , Zuo Quan Xu , Rui Zhou

We consider in this paper a general two-sided jump-diffusion risk model that allows for risky investments as well as for correlation between the two Brownian motions driving insurance risk and investment return. We first introduce the model…

Computational Finance · Quantitative Finance 2013-02-28 Chuancun Yin , Yuzhen Wen

We explicitly find the rate of exponential long-term convergence for the ruin probability in a level-dependent L\'evy-driven risk model, as time goes to infinity. Siegmund duality allows to reduce the pro blem to long-term convergence of a…

Probability · Mathematics 2018-07-02 Pierre-Olivier Goffard , Andrey Sarantsev

The claim arrival process to an insurance company is modeled by a compound Poisson process whose intensity and/or jump size distribution changes at an unobservable time with a known distribution. It is in the insurance company's interest to…

Optimization and Control · Mathematics 2008-12-10 Erhan Bayraktar , H. Vincent Poor

We consider de Finetti's problem for spectrally one-sided L\'evy risk models with control strategies that are absolutely continuous with respect to the Lebesgue measure. Furthermore, we consider the version with a constraint on the time of…

Optimization and Control · Mathematics 2026-01-14 Mauricio Junca , Harold Moreno-Franco , José-Luis Pérez , Kazutoshi Yamazaki

We formulate the insurance risk process in a general Levy process setting, and give general theorems for the ruin probability and the asymptotic distribution of the overshoot of the process above a high level, when the process drifts to…

Probability · Mathematics 2007-05-23 Claudia Kluppelberg , Andreas E. Kyprianou , Ross A. Maller

We consider an interesting natural extension to the Parisian ruin problem under the assumption that the risk reserve dynamics are given by a spectrally negative L\'evy process. The distinctive feature of this extension is that the…

Probability · Mathematics 2021-11-05 Duy Phat Nguyen , Konstantin Borovkov

We propose a model in which, in exchange to the payment of a fixed transaction cost, an insurance company can choose the retention level as well as the time at which subscribing a perpetual reinsurance contract. The surplus process of the…

Optimization and Control · Mathematics 2024-02-13 Salvatore Federico , Giorgio Ferrari , Maria-Laura Torrente

We analyze the asymptotics of crossing a high piecewise linear barriers by a renewal compound process with the subexponential jumps. The study is motivated by ruin probabilities of two insurance companies (or two branches of the same…

Probability · Mathematics 2008-05-13 Zbigniew Palmowski , Martijn Pistorius

We consider an insurance company which faces financial risk in the form of insurance claims and market-dependent surplus fluctuations. The company aims to simultaneously control its terminal wealth (e.g. at the end of an accounting period)…

Risk Management · Quantitative Finance 2025-11-24 Aleksandar Arandjelović , Julia Eisenberg

Lundberg-type inequalities for ruin probabilities of non-homogeneous risk models are presented in this paper. By employing martingale method, the upper bounds of ruin probabilities are obtained for the general risk models under weak…

Probability · Mathematics 2020-06-05 Qianqian Zhou , Alexander Sakhanenko , Junyi Guo

In this manuscript we consider the dual risk model with financial application, where the random gains occur under a renewal process. We particularly work the Erlang(n) case for common distribution of the inter-arrival times, from there it…

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