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In this paper, we introduce an insurance ruin model with adaptive premium rate, thereafter refered to as restructuring/refraction, in which classical ruin and bankruptcy are distinguished. In this model, the premium rate is increased as…

Probability · Mathematics 2013-06-21 Jean-François Renaud

In this paper we determine bounds and exact asymptotics of the ruin probability for risk process with arrivals given by a linear marked Hawkes process. We consider the light-tailed and heavy-tailed case of the claim sizes. Main technique is…

Probability · Mathematics 2023-04-07 Zbigniew Palmowski , Simon Pojer , Stefan Thonhauser

Let $\left\{\sum_{i=1}^n \lambda_i X_i(t), t\in [0,T]\right\}$ be an aggregate Gaussian risk process with $X_i, i\leq n$ independent Gaussian processes satisfying Piterbarg conditions and $\lambda_i$'s given positive weights. In this paper…

Probability · Mathematics 2014-04-24 Krzysztof Debicki , Enkelejd Hashorva , Lanpeng Ji , Zhongquan Tan

This paper develops asymptotics and approximations for ruin probabilities in a multivariate risk setting. We consider a model in which the individual reserve processes are driven by a common Markovian environmental process. We subsequently…

Probability · Mathematics 2018-12-24 G. A. Delsing , M. R. H. Mandjes , P. J. C. Spreij , E. M. M. Winands

The paper deals with the ruin problem of an insurance company investing its capital reserve in a risky asset with the price dynamics given by a conditional geometric Brownian motion whose parameters depend on a Markov process describing a…

Probability · Mathematics 2023-11-21 Viktor Antipov , Yuri Kabanov

Let $\mathbf{B}(t)=(B_1(t), B_2(t))$, $t\geq 0$ be a two-dimensional Brownian motion with independent components and define the $\mathbf{\gamma}$-reflected process…

Probability · Mathematics 2024-09-24 Timofei Shashkov

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

Parisian ruin probability in the classical Brownian risk model, unlike the standard ruin probability can not be explicitly calculated even in one-dimensional setup. Resorting on asymptotic theory, we derive in this contribution an…

Probability · Mathematics 2020-01-28 Nikolai Kriukov

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 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

We derive exact tail asymptotics of the Parisian ruin probability for Gaussian risk models driven by locally self-similar Gaussian processes with a power-type deterministic trend. The considered setting includes non-stationary Gaussian…

Probability · Mathematics 2026-04-02 Svyatoslav M. Novikov

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 develop sharp large deviation asymptotics for the probability of ruin in a Markov-dependent stochastic economic environment and study the extremes for some related Markovian processes which arise in financial and insurance mathematics,…

Probability · Mathematics 2009-09-01 Jeffrey F. Collamore

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

Let $\textbf{Z}(t)=(Z_1(t) ,\ldots, Z_d(t))^\top , t \in \mathbb{R}$ where $Z_i(t), t\in \mathbb{R}$, $i=1,...,d$ are mutually independent centered Gaussian processes with continuous sample paths a.s. and stationary increments. For…

Probability · Mathematics 2021-10-27 Krzysztof Bisewski , Krzysztof Debicki , Nikolai Kriukov

We give asymptotic analysis for probability of absorbtion $\mathsf{P}(\tau_0\le T)$ on the interval $[0,T]$, where $ \tau_0=\inf\{t:X_t=0\}$ and $X_t$ is a nonnegative diffusion process relative to Brownian motion $B_t$, dX_t&=\mu…

Probability · Mathematics 2009-05-25 F. Klebaner , R. Liptser

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

In this paper, we obtain the finite-horizon and infinite-horizon ruin probability asymptotics for risk processes with claims of subexponential tails for non-stationary arrival processes that satisfy a large deviation principle. As a result,…

Risk Management · Quantitative Finance 2014-10-16 Lingjiong Zhu

We introduce a longevity feature to the classical optimal dividend problem by adding a constraint on the time of ruin of the firm. We extend the results in \cite{HJ15}, now in context of one-sided L\'evy risk models. We consider de…

Optimization and Control · Mathematics 2017-05-12 Camilo Hernandez , Mauricio Junca , Harold Moreno-Franco

This paper focuses on a discrete-time risk model in which both insurance risk and financial risk are taken into account. We study the asymptotic behaviour of the ruin probability and the tail probability of the aggregate risk amount.…

Probability · Mathematics 2019-02-20 Enkelejd Hashorva , Jinzhu Li