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We consider continuous time risk processes in which the claim sizes are dependent and non-identically distributed phase-type distributions. The class of distributions we propose is easy to characterize and allows to incorporate the…

Probability · Mathematics 2023-07-28 Oscar Peralta , Matthieu Simon

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

We derive formulas for the moments of the ruin time in a L\'evy risk model and use these to determine the asymptotic behavior of the moments of the ruin time as the initial capital tends to infinity. In the special case of the perturbed…

Probability · Mathematics 2022-08-02 Philipp Lukas Strietzel , Anita Behme

We reprove a result concerning certain ruin in the classical problem of the probability of ruin with risky investments and several of it's generalisations. We also provide the combined transition density of the risk and investment processes…

Probability · Mathematics 2008-12-02 David Maher

This paper investigates the Parisian ruin probability for processes with power-asymmetric behavior of the variance near the unique optimal point. We derive the exact asymptotics as the ruin boundary tends to infinity and extend the previous…

Probability · Mathematics 2024-01-12 Pavel Ievlev

We start by showing that the finite-time absolute ruin probability in the classical risk model with constant interest force can be expressed in terms of the transition probability of a positive Ornstein-Uhlenbeck type process, say X. Our…

Computational Finance · Quantitative Finance 2010-06-15 Ronnie L. Loeffen , Pierre Patie

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

We consider a dual risk model with constant expense rate and i.i.d. exponentially distributed gains $C_i$ ($i=1,2,\dots$) that arrive according to a renewal process with general interarrival times. We add to this classical dual risk model…

Probability · Mathematics 2020-12-02 Onno Boxma , Esther Frostig , Zbigniew Palmowski

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 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

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

We investigate the role of reinsurance in maximizing the wealth of an insurance company. We use Liu's uncertainty theory (B. Liu, 2007) for the problem modeling and follow-up computations. The uncertainty measure of ruin for the insurance…

Optimization and Control · Mathematics 2021-01-19 Wrya Vakili , Alireza Ghaffari-Hadigheh

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

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

This paper addresses allocation methodologies for a risk measure inherited from ruin theory. Specifically, we consider a dynamic value-at-risk (VaR) measure defined as the smallest initial capital needed to ensure that the ultimate ruin…

Mathematical Finance · Quantitative Finance 2021-03-31 Guusje Delsing , Michel Mandjes , Peter Spreij , Erik Winands

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 appropriate estimation of incurred but not reported (IBNR) reserves is traditionally one of the most important task of actuaries working in casualty and property insurance. As certain claims are reported many years after their…

Methodology · Statistics 2015-01-27 Laszlo Martinek , Miklos Arato , Miklos Malyusz

We study the asymptotic behavior of ruin probabilities, as the initial reserve goes to infinity, for a reserve process model where claims arrive according to a renewal process, while between the claim times the process has the dynamics of…

Probability · Mathematics 2023-02-24 Ying He , Konstantin Borovkov

In this paper, we extend an existing scheme for numerically calculating the probability of ruin of a classical Cram\'er--Lundberg reserve process having absolutely continuous but otherwise general claim size distributions. We employ a dense…

Probability · Mathematics 2017-05-29 Oscar Peralta , Leonardo Rojas-Nandayapa , Wangyue Xie , Hui Yao

Our paper explores a discrete-time risk model with time-varying premiums, investigating two types of correlated claims: main claims and by-claims. Settlement of the by-claims can be delayed for one time period, representing real-world…

Risk Management · Quantitative Finance 2024-08-02 Dhiti Osatakul , Shuanming Li , Xueyuan Wu