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We provide a framework for detecting relevant insurance companies in a systemic risk perspective. Among the alternative methodologies for measuring systemic risk, we propose a complex network approach where insurers are linked to form a…

Risk Management · Quantitative Finance 2020-11-24 Gian Paolo Clemente , Alessandra Cornaro

We consider the classical Cram\'er-Lundberg risk model with claim sizes that are mixtures of phase-type and subexponential variables. Exploiting a specific geometric compound representation, we propose control variate techniques to…

Probability · Mathematics 2020-06-16 Hansjörg Albrecher , Martin Bladt , Eleni Vatamidou

We study the information dynamics in a network of spin-$1/2$ particles when edges representing $XY$ interactions are randomly added to a disconnected graph accordingly to a probability distribution characterized by a "weighting" parameter.…

Quantum Physics · Physics 2015-04-24 Umer Farooq , Stefano Mancini

Reliability of safety-critical systems is an important issue in system engineering and in most practical situations the reliability of a non series-parallel network system has to be calculated. Some methods for calculating reliability use…

Probability · Mathematics 2017-05-30 Lukas Schaefer , Sergio Garcia , Vassili Srithammavanh

In light of intense hurricane activity along the U.S. Atlantic coast, attention has turned to understanding both the economic impact and behaviour of these storms. The compound Poisson-lognormal process has been proposed as a model for…

Applications · Statistics 2016-02-15 Simon Mak , Derek Bingham , Yi Lu

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

In this paper we present a novel algorithm to study the evolution of credit risk across complex multilayer networks. Pagerank-like algorithms allow for the propagation of an influence variable across single networks, and allow quantifying…

Social and Information Networks · Computer Science 2020-08-24 Cristián Bravo , María Óskarsdóttir

In this paper, we develop efficient randomized algorithms for estimating probabilistic robustness margin and constructing robustness degradation curve for uncertain dynamic systems. One remarkable feature of these algorithms is their…

Optimization and Control · Mathematics 2008-05-13 Xinjia Chen , Kemin Zhou , Jorge L. Aravena

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

We analyze cascades of defaults in an interbank loan market. The novel feature of this study is that the network structure and the size distribution of banks are derived from empirical data. We find that the ability of a defaulted…

Statistical Finance · Quantitative Finance 2016-01-21 Fariba Karimi , Matthias Raddant

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

In this paper a class of Ornstein--Uhlenbeck processes driven by compound Poisson processes is considered. The jumps arrive with exponential waiting times and are allowed to be two-sided. The jumps are assumed to form an iid sequence with…

Probability · Mathematics 2016-09-01 Anders Rønn-Nielsen

Bipartite ranking is an important supervised learning problem; however, unlike regression or classification, it has a quadratic dependence on the number of samples. To circumvent the prohibitive sample cost, many recent work focus on…

Machine Learning · Computer Science 2019-12-03 San Gultekin , John Paisley

A new modeling framework for bipartite social networks arising from a sequence of partially time-ordered relational events is proposed. We directly model the joint distribution of the binary variables indicating if each single actor is…

Methodology · Statistics 2018-10-23 Francesco Bartolucci , Antonietta Mira , Stefano Peluso

This paper presents a new copula to model dependencies between insurance entities, by considering how insurance entities are affected by both macro and micro factors. The model used to build the copula assumes that the insurance losses of…

Statistics Theory · Mathematics 2014-11-03 Samiha Ismail , Gao Yu , Gesine Reinert , Trevor Maynard

Random networks are a powerful tool in the analytical modeling of complex networks as they allow us to write approximate mathematical models for diverse properties and behaviors of networks. One notable shortcoming of these models is that…

Physics and Society · Physics 2023-07-10 Laurent Hébert-Dufresne , Márton Pósfai , Antoine Allard

Diffusion in a linear potential in the presence of position-dependent killing is used to mimic a default process. Different assumptions regarding transport coefficients, initial conditions, and elasticity of the killing measure lead to…

Computational Finance · Quantitative Finance 2015-05-30 Yuri A. Katz

This paper studies Pareto-optimal reinsurance design in a monopolistic market with multiple primary insurers and a single reinsurer, all with heterogeneous risk preferences. The risk preferences are characterized by a family of risk…

Risk Management · Quantitative Finance 2025-12-15 Tim J. Boonen , Xia Han , Peng Liu , Jiacong Wang

This paper deals with the discrete-time risk model with nonidentically distributed claims. We suppose that the claims repeat with time periods of three units, that is, claim distributions coincide at times $\{1,4,7,\ldots\}$, at times…

Probability · Mathematics 2016-01-07 Andrius Grigutis , Agneška Korvel , Jonas Šiaulys

We prove that a large class of discrete-time insurance surplus processes converge weakly to a generalized Ornstein-Uhlenbeck process, under a suitable re-normalization and when the time-step goes to 0. Motivated by ruin theory, we use this…

Probability · Mathematics 2020-07-16 Yuchao Dong , Jérôme Spielmann
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