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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 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 study the probability of ruin before time $t$ for the family of tempered stable L\'evy insurance risk processes, which includes the spectrally positive inverse Gaussian processes. Numerical approximations of the ruin time distribution…

Probability · Mathematics 2013-03-08 Philip S. Griffin , Ross A. Maller , Dale Roberts

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

In this paper we examine a multivariate risk model, with common renewal counting process, constant interest rate, and each claim vector is accompanied by a random number of delayed claim vectors. The interest is focused on the asymptotic…

Probability · Mathematics 2026-04-13 Dimitrios G. Konstantinides , Charalampos D. Passalidis , Meng Yuan

In this paper, the asymptotic behavior of the entrance probability of discounted aggregate claims of a certain family of rare sets is studied, considering the finite and infinite time horizons. This multivariate risk model, driven by a…

Probability · Mathematics 2026-03-11 Dimitrios G. Konstantinides , Charalampos D. Passalidis , Hui Xu

In this paper we analyze so-called Parisian ruin probability that happens when surplus process stays below zero longer than fixed amount of time $\zeta>0$. We focus on general spectrally negative L\'{e}vy insurance risk process. For this…

Probability · Mathematics 2010-04-21 Irmina Czarna , Zbigniew Palmowski

Random shifting typically appears in credibility models whereas random scaling is often encountered in stochastic models for claim sizes reflecting the time-value property of money. In this article we discuss some aspects of random shifting…

Methodology · Statistics 2014-10-08 Enkelejd Hashorva , Lanpeng Ji

In this paper, we consider a classical risk model refracted at given level. We give an explicit expression for the joint density of the ruin time and the cumulative number of claims counted up to ruin time. The proof is based on solving…

Probability · Mathematics 2017-11-28 Yanhong Li , Zbigniew Palmowski , Chunming Zhao , Chunsheng Zhang

Let X and Y be two independent and nonnegative random variables with corresponding distributions F and G. Denote by H the distribution of the product XY , called the product convolution of F and G. Cline and Samorodnitsky (1994) proposed…

Probability · Mathematics 2017-10-03 Hui Xu , Fengyang Cheng , Yuebao Wang , Dongya Cheng

We model the influence of sharing large exogeneous losses to the reinsurance market by a bipartite graph. Using Pareto-tailed claims and multivariate regular variation we obtain asymptotic results for the Value-at-Risk and the Conditional…

Risk Management · Quantitative Finance 2015-11-16 Oliver Kley , Claudia Kluppelberg , Gesine Reinert

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

The paper investigates a discrete time Binomial risk model with different types of polices and shock events may influence some of the claim sizes. It is shown that this model can be considered as a particular case of the classical compound…

Probability · Mathematics 2022-10-12 Pavlina K. Jordanova , Evelina Veleva

An investor's risk aversion is assumed to tend to infinity. In a fairly general setting, we present conditions ensuring that the respective utility indifference prices of a given contingent claim converge to its super replication price.

Probability · Mathematics 2009-04-10 Laurence Carassus , Miklos Rasonyi

We present here a new extended model of the gambler's ruin problem by incorporating delays in receiving of rewards and paying of penalties. When there is a difference between two delays, an exact analysis of the ruin probability is…

Physics and Society · Physics 2018-10-23 Tomohisa Imai , Toru Ohira

A near-maximum insurance claim is one falling within a distance $a$ of the current maximal claim. In this paper, we investigate asymptotic behavior of normalized numbers of near-maximum insurance claims under the assumption that the…

Probability · Mathematics 2019-04-08 Anna Dembińska , Aneta Buraczyńska

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

The insurance model when the amount of claims depends on the state of the insured person (healthy, ill, or dead) and claims are connected in a Markov chain is investigated. The signed compound Poisson approximation is applied to the…

Probability · Mathematics 2020-01-13 Gabija Liaudanskaitė , Vydas Čekanavičius

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

We consider two different portfolios of proportional reinsurance of the same pool of risks. This contribution is concerned with Gaussian-like risks, which means that for large values the survival function of such risks is, up to a…

Probability · Mathematics 2014-05-06 Julia Farkas , Enkelejd Hashorva
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