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Related papers: Duality for multidimensional ruin problem

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We study a ruin problem for an annuity model where a fixed fraction of capital is invested in a risky asset. Under weak assumptions on jumps, the ruin probability solves a second-order integro-differential equation and decays as a power…

Probability · Mathematics 2026-01-06 Platon Promyslov

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…

It has been decades since the academic world of ruin theory defined the insolvency of an insurance company as the time when its surplus falls below zero. This simplification, however, needs careful adaptions to imitate the real-world…

Risk Management · Quantitative Finance 2020-07-06 Aili Zhang , Ping Chen , Shuanming Li , Wenyuan Wang

This paper investigates ruin probabilities for a two-dimensional fractional Brownian risk model with a proportional reinsurance scheme. We focus on joint and simultaneous ruin probabilities in a finite-time horizon. The risk processes of…

Probability · Mathematics 2020-10-02 Krzysztof Kȩpczyński

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 analyse the asymptotics of ruin probabilities of two insurance companies (or two branches of the same company) that divide between them both claims and premia in some specified proportions when the initial reserves of both companies tend…

Probability · Mathematics 2017-06-02 Sergey Foss , Dmitry Korshunov , Zbigniew Palmowski , Tomasz Rolski

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

We study the discrete time risk process modelled by the skip-free random walk and we derive the results connected to the ruin probability, such as crossing the fixed level, for this kind of process. We use the method relying on the…

Probability · Mathematics 2017-09-08 Ivana Geček Tuđen

Complex non-linear interactions between banks and assets we model by two time-dependent Erd\H{o}s Renyi network models where each node, representing bank, can invest either to a single asset (model I) or multiple assets (model II). We use…

Risk Management · Quantitative Finance 2015-06-19 B. Podobnik , D. Horvatic , M. Bertella , L. Feng , X. Huang , B. Li

We introduce the hybrid risk process, constructed via a time-change transformation applied to the solution of a hybrid stochastic differential equation. The framework covers several modern ruin settings, incorporating features like…

Probability · Mathematics 2025-07-01 Oscar Peralta , Habacuq Vallejo

Let $\{B(t), t\ge 0\}$ be a Brownian motion. Consider the Brownian motion risk model with interest rate collection and tax payment defined by \begin{align}\label{Rudef}…

Probability · Mathematics 2018-06-14 Long Bai , Peng Liu

A certain complexity threshold is proposed which defines the term `complex network' for RSN, e.g. Kauffman networks with s>=2 - more than two equally probable state variants. Such Kauffman networks are no longer Boolean networks. RSN are…

Disordered Systems and Neural Networks · Physics 2010-04-23 Andrzej Gecow

Consider a multi-dimensional Brownian motion which models the surplus processes of multiple lines of business of an insurance company. Our main result gives exact asymptotics for the cumulative Parisian ruin probability as the initial…

Probability · Mathematics 2020-04-28 Lanpeng Ji

The classical Cram\'er-Lundberg risk process models the ruin probability of an insurance company experiencing an incoming cash flow - the premium income, and an outgoing cash flow - the claims. From a system's viewpoint, the web of…

Probability · Mathematics 2021-04-13 Rukuang Huang

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

We consider the problem of risk diversification in complex networks. Nodes represent e.g. financial actors, whereas weighted links represent e.g. financial obligations (credits/debts). Each node has a risk to fail because of losses…

Physics and Society · Physics 2016-04-27 Rebekka Burkholz , Antonios Garas , Frank Schweitzer

We consider the simple random walk on the $N$-dimensional integer lattice from the perspective of evaluating asymptotically the duration of play in the multidimensional gambler\apost s ruin problem. We show that, under suitable rescalings,…

Probability · Mathematics 2020-12-08 Achillefs Tzioufas

The study deals with the ruin problem when an insurance company invests its reserve in a risky asset whose the price dynamics is given by a geometric L\'evy process. Considering the ruin probability as a of the capital reserve we obtain for…

Probability · Mathematics 2024-01-10 Viktor Antipov , Yuri Kabanov

We consider a generalization of the classical risk model when the premium intensity depends on the current surplus of an insurance company. All surplus is invested in the risky asset, the price of which follows a geometric Brownian motion.…

Probability · Mathematics 2014-03-28 Yuliya Mishura , Mykola Perestyuk , Olena Ragulina

We investigate the asymptotic of ruin probabilities when the company combines the life- and non-life insurance businesses and invests its reserve into a risky asset with stochastic volatility and drift driven by a two-state Markov process.…

Probability · Mathematics 2020-12-10 Anastasiya Ellanskaya , Yuri Kabanov