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We deal with a generalization of the classical risk model when an insurance company gets additional funds whenever a claim arrives and consider some practical approaches to the estimation of the ruin probability. In particular, we get an…

Probability · Mathematics 2015-03-19 Yuliya Mishura , Olena Ragulina , Oleksandr Stroyev

We study the ruin problem over a risk process described by a discrete-time Markov model. In contrast to previous studies that focused on the asymptotic behaviour of ruin probabilities for large values of the initial capital, we provide a…

Risk Management · Quantitative Finance 2013-08-26 Ilya Tkachev , Alessandro Abate

In this paper, we adapt the classic Cram\'er-Lundberg collective risk theory model to a perturbed model by adding a Wiener process to the compound Poisson process, which can be used to incorporate premium income uncertainty, interest rate…

Risk Management · Quantitative Finance 2021-07-07 Yacine Koucha , Alfredo D. Egidio dos Reis

Numerical evaluation of ruin probabilities in the classical risk model is an important problem. If claim sizes are heavy-tailed, then such evaluations are challenging. To overcome this, an attractive way is to approximate the claim sizes…

Probability · Mathematics 2014-04-25 Eleni Vatamidou , Ivo J. B. F. Adan , Maria Vlasiou , Bert Zwart

In this paper, we build on the techniques developed in Albrecher et al. (2013), to generate initial-boundary value problems for ruin probabilities of surplus-dependent premium risk processes, under a renewal case scenario, Erlang (2) claim…

Probability · Mathematics 2021-01-12 Corina Constantinescu , Zbigniew Palmowski , Jing Wang

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

The aim of this paper is to construct the confidence interval of the ultimate ruin probability under the insurance surplus driven by a L\'evy process. Assuming a parametric family for the L\'evy measures, we estimate the parameter from the…

Probability · Mathematics 2021-12-15 Yasutaka Shimizu

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

In this short note, we derive explicit formulas for the joint densities of the time to ruin and the number of claims until ruin in perturbed classical risk models, by constructing several auxiliary random processes.

Probability · Mathematics 2016-08-22 Peng Liu , Chunsheng Zhang , Lanpeng Ji

We analyze the classical Brownian risk models discussing the approximation of ruin probabilities (classical, {\gamma}-reflected, Parisian and cumulative Parisian) for the case that ruin can occur only on specific discrete grids. A practical…

Probability · Mathematics 2020-01-29 Grigori Jasnovidov

In this paper we investigate continuity properties for ruin probability in the classical risk model. Properties of contractive integral operators are used to derive continuity estimates for the deficit at ruin. These results are also…

Probability · Mathematics 2025-11-18 Lazaros Kanellopoulos

Following an article by Muller and Pflug, we study the adjustment coefficient of ruin theory in a context of temporal dependency. We provide a consistent estimator of this coefficient, and perform some simulations.

Statistics Theory · Mathematics 2009-01-05 H. Cossette , E. Marceau , V. Maume-Deschamps

In this text, we establish the risk model based on AR(1) series and propose the basic model which has a dependent structure under intensity of claim number. Considering some properties of the risk model, we take advantage of newton…

Risk Management · Quantitative Finance 2017-10-31 Wenhao Li , Bolong Wang , Tianxiang Shen , Ronghua Zhu , Dehui Wang

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

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 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

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

Based on a discrete version of the Pollaczeck-Khinchine formula, a general method to calculate the ultimate ruin probability in the Gerber-Dickson risk model is provided when claims follow a negative binomial mixture distribution. The…

Probability · Mathematics 2020-06-03 David J. Santana , Luis Rincon

In this work the ruin probability of the Lundberg risk process is used as a criterion for determining the optimal security loading of premia in the presence of price-sensitive demand for insurance. Both single and aggregated claim processes…

Risk Management · Quantitative Finance 2021-08-24 Ragnar Levy Gudmundarson , Manuel Guerra , Alexandra Bugalho de Moura

The field of risk theory has traditionally focused on ruin-related quantities. In particular, the socalled Expected Discounted Penalty Function has been the object of a thorough study over the years. Although interesting in their own right,…

Risk Management · Quantitative Finance 2014-06-27 Zied Ben-Salah , Hélène Guérin , Manuel Morales , Hassan Omidi Firouzi
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