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Related papers: Duality for multidimensional ruin problem

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Consider two insurance companies (or two branches of the same company) that receive premiums at different rates and then split the amount they pay in fixed proportions for each claim (for simplicity we assume that they are equal). We model…

General Finance · Quantitative Finance 2011-02-14 Irmina Czarna , Zbigniew Palmowski

We analyse the ruin probabilities for a renewal insurance risk process with inter-arrival time distributions depending on the claims that arrived within a fixed (past) time window. This dependence could be explained through a regenerative…

Probability · Mathematics 2016-04-22 Corina Constantinescu , Suhang Dai , Weihong Ni , Zbigniew Palmowski

We apply the theory of linear recurrence sequences to find an expression for the ultimate ruin probability in a discrete-time risk process. We assume the claims follow an arbitrary distribution with support $\{0,1,\ldots,m\}$, for some…

Probability · Mathematics 2023-02-14 David J. Santana , Luis Rincón

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

In this paper, we unify two popular approaches for the definition of actuarial ruin with implementation delays, also known as Parisian ruin. Our new definition of ruin includes both deterministic delays and exponentially distributed delays:…

Probability · Mathematics 2018-02-05 Mohamed Amine Lkabous , Jean-François Renaud

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

We consider settings in which the distribution of a multivariate random variable is partly ambiguous. We assume the ambiguity lies on the level of the dependence structure, and that the marginal distributions are known. Furthermore, a…

Mathematical Finance · Quantitative Finance 2020-05-27 Stephan Eckstein , Michael Kupper , Mathias Pohl

We consider a bivariate Cramer-Lundberg-type risk reserve process with the special feature that each insurance company agrees to cover the deficit of the other. It is assumed that the capital transfers between the companies are…

Probability · Mathematics 2015-05-05 Jevgenijs Ivanovs , Onno Boxma

This paper extends the classical dividend problem by incorporating a novel, path-dependent mechanism of firm default. In the traditional framework, ruin occurs when the surplus process first reaches zero. In contrast, default in our model…

Optimization and Control · Mathematics 2026-01-30 Andi Bodnariu , Nils Engler , Neofytos Rodosthenous

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

This paper deals with the detection and prediction of losses due to cyber attacks waged on vital networks. The accumulation of losses to a network during a series of attacks is modeled by a 2-dimensional monotone random walk process as…

Probability · Mathematics 2019-01-23 Jewgeni H. Dshalalow , Ryan T. White

Electricity distribution networks (DNs) in many regions are increasingly subjected to disruptions caused by tropical storms. Distributed Energy Resources (DERs) can act as temporary supply sources to sustain "microgrids" resulting from…

Computational Engineering, Finance, and Science · Computer Science 2018-10-05 Derek Chang , Devendra Shelar , Saurabh Amin

In this paper we study the asymptotic decay of finite time ruin probabilities for an insurance company that faces heavy-tailed claims, uses predictable investment strategies and makes investments in risky assets whose prices evolve…

Risk Management · Quantitative Finance 2008-12-02 Henrik Hult , Filip Lindskog

In this paper we consider the Parisian ruin probabilities for the dual risk model in a discrete-time setting. By exploiting the strong Markov property of the risk process we derive a recursive expression for the fnite-time Parisian ruin…

Probability · Mathematics 2017-08-24 Zbigniew Palmowski , Lewis Ramsden , Apostolos D. Papaioannou

In this paper we revisited the classical problem of max-sum equivalence of randomly weighted sums in two dimensions. In opposite to the most papers in literature, we consider that there exists some interdependence between the primary random…

Probability · Mathematics 2025-05-27 Dimitrios G. Konstantinides , Charalampos D. Passalidis

In this contribution we study asymptotics of the simultaneous Parisian ruin probability of a two-dimensional fractional Brownian motion risk process. This risk process models the surplus processes of an insurance and a reinsurance…

Probability · Mathematics 2024-01-22 Grigori Jasnovidov , Aleksandr Shemendyuk

This survey treats the problem of ruin in a risk model when assets earn investment income. In addition to a general presentation of the problem, topics covered are a presentation of the relevant integro-differential equations, exact and…

Risk Management · Quantitative Finance 2008-12-18 Jostein Paulsen

In this paper we evaluate the probability of the discrete time Parisian ruin that occurs when surplus process stays below or at zero at least for some fixed duration of time $d>0$. We identify expressions for the ruin probabilities within…

Probability · Mathematics 2017-06-16 Irmina Czarna , Zbigniew Palmowski , Przemysław Światek

We consider a model of two interdependent networks, where every node in one network depends on one or more supply nodes in the other network and a node fails if it loses all of its supply nodes. We develop algorithms to compute the failure…

Data Structures and Algorithms · Computer Science 2021-11-29 Jianan Zhang , Eytan Modiano

The authors propose a new variation of random walks called ladder chains $L(r,s,p)$. We extend concepts such as ruin probability, hitting time, transience and recurrence of random walks to ladder chain. Take $L(2,2,p)$ for instance, we find…

Probability · Mathematics 2018-12-10 Chenhe Zhang , Xiang Fang