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We analyze fluctuations of random walks with generally distributed increments. Integral representations for key performance measures are obtained by extending an inversion theorem of Hewitt [11] for Laplace-Stieltjes transforms. Another…

Probability · Mathematics 2015-08-05 E. S. Badila

We consider a risk model where deficits after ruin are covered by a new type of reinsurance contract that provides capital injections. To allow the insurance company's survival after ruin, the reinsurer injects capital only at ruin times…

Risk Management · Quantitative Finance 2018-06-13 Zied Ben Salah , José Garrido

This paper concerns the dual risk model, dual to the risk model for insurance applications, where premiums are surplus-dependent. In such a model premiums are regarded as costs, while claims refer to profits. We calculate the mean of the…

Pricing of Securities · Quantitative Finance 2016-05-17 Ewa Marciniak , Zbigniew Palmowski

We study a dynamic model of a non-life insurance portfolio. The foundation of the model is a compound Poisson process that represents the claims side of the insurer. To introduce clusters of claims appearing, e.g. with catastrophic events,…

Risk Management · Quantitative Finance 2026-03-03 Jonathan Klinge , Maren Diane Schmeck

We study a multidimensional renewal risk model, with common counting process and cadlag returns. Considering that the claim vectors have common distribution from some multivariate distribution class with heavy tail, are mutually weakly…

Probability · Mathematics 2024-12-18 Dimitrios G. Konstantinides , Charalampos D. Passalidis

We revisit Schnieper's model, which decomposes incurred but not reported (IBNR) reserves into two components: reserves for newly reported claims (true IBNR) and reserves for changes over time in the estimated cost of already reported claims…

Methodology · Statistics 2026-03-13 Nicolas Baradel

Recent studies have demonstrated an interesting connection between the asymptotic behavior at ruin of a L\'evy insurance risk process under the Cram\'er-Lundberg and convolution equivalent conditions. For example, the limiting distributions…

Probability · Mathematics 2016-01-08 Philip S. Griffin

In ruin theory, the net profit condition intuitively means that the incurred random claims on average do not occur more often than premiums are gained. The breach of the net profit condition causes guaranteed ruin in few but simple cases…

Probability · Mathematics 2024-01-08 Andrius Grigutis , Arvydas Karbonskis , Jonas Šiaulys

In this article we differentiate and characterize the standard two-process serial models and the standard two process parallel models by investigating the behavior of (conditional) distributions of the total completion times and survivals…

Applications · Statistics 2017-12-05 Ru Zhang , Yanjun Liu , James T. Townsend

In this note we find a formula for the supremum distribution of spectrally positive or negative L\'evy processes with a broken linear drift. This gives formulas for ruin probabilities in the case when two insurance companies (or two…

Probability · Mathematics 2019-01-01 Zbigniew Michna

In the setting of a L\'evy insurance risk process, we present some results regarding the Parisian ruin problem which concerns the occurrence of an excursion below zero of duration bigger than a given threshold $r$. First, we give the joint…

Probability · Mathematics 2017-11-15 Ronne Loeffen , Zbigniew Palmowski , Budhi Surya

In this paper we consider a multivariate risk model with common renewal process, while the logarithmic returns of the insurers investment portfolio, are described by a Levy process. In the two main results are established an asymptotic…

Probability · Mathematics 2025-10-21 Dimitrios G. Konstantinides , Charalampos D. Passalidis

We study a continuous-time asset-allocation problem for an insurance firm that backs up liabilities from multiple non-life business lines with underwriting profits and investment income. The insurance risks are captured via a…

Portfolio Management · Quantitative Finance 2021-08-13 Rafael Serrano , Camilo Castillo

Claim reserving in insurance has been studied through two primary frameworks: the macro-level approach, which estimates reserves at an aggregate level (e.g., Chain-Ladder), and the micro-level approach, which estimates reserves at the…

Methodology · Statistics 2025-02-24 Sebastian Calcetero Vanegas , Andrei L. Badescu , X. Sheldon Lin

Inspired by the double-debt problem in Japan where the mortgagor has to pay the remaining loan even if their house was destroyed by a catastrophic event, we model the lender's cash flow, by an exponential functional of a renewal-reward…

Probability · Mathematics 2020-09-24 J. Akahori , C. Constantinescu , Y. Imamura , Hh. Pham

Important models in insurance, for example the Carm{\'e}r--Lundberg theory and the Sparre Andersen model, essentially rely on the Poisson process. The process is used to model arrival times of insurance claims. This paper extends the…

Statistics Theory · Mathematics 2019-04-16 Arun Kumar , Nikolai Leonenko , Alois Pichler

In this paper, we study Markov-dependent reflected autoregressive processes, and other related models the analysis of which results in a vector-valued fixed-point functional equation of a certain type. In queueing terms, such processes…

Probability · Mathematics 2025-06-23 Ioannis Dimitriou

We investigate models of the life annuity insurance when the company invests its reserve into a risky asset with price following a geometric Brownian motion. Our main result is an exact asymptotic of the ruin probabilities for the case of…

Probability · Mathematics 2015-05-19 Yuri Kabanov , Serguei Pergamenshchikov

Define a $\gamma$-reflected process $W_\gamma(t)=Y_H(t)-\gamma\inf_{s\in[0,t]}Y_H(s)$, $t\ge0$ with input process $\{Y_H(t), t\ge 0\}$ which is a fractional Brownian motion with Hurst index $H\in (0,1)$ and a negative linear trend. In risk…

Probability · Mathematics 2014-02-12 Peng Liu , Enkelejd Hashorva , Lanpeng Ji

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