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Related papers: Fractional Risk Process in Insurance

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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

Using a suitable change of probability measure, we obtain a novel Poisson series representation for the arbitrage- free price process of vulnerable contingent claims in a regime-switching market driven by an underlying continuous- time…

Computational Finance · Quantitative Finance 2017-01-09 Agostino Capponi , Jose Figueroa-Lopez , Jeffrey Nisen

The claim experience of the past is a very important information to calculate the fair price of an insurance contract. In a lot of European countries for instance the prices for motor car insurance depend on the number of claims the driver…

Risk Management · Quantitative Finance 2010-09-22 Magda Schiegl

The fractional Poisson process (FPP) is a counting process with independent and identically distributed inter-event times following the Mittag-Leffler distribution. This process is very useful in several fields of applied and theoretical…

Probability · Mathematics 2015-05-27 Mauro Politi , Taisei Kaizoji , Enrico Scalas

The fractional non-homogeneous Poisson process was introduced by a time-change of the non-homogeneous Poisson process with the inverse $\alpha$-stable subordinator. We propose a similar definition for the (non-homogeneous) fractional…

Probability · Mathematics 2017-11-27 Nikolai Leonenko , Enrico Scalas , Mailan Trinh

We consider a risk model with a counting process whose intensity is a Markovian shot-noise process, to resolve one of the disadvantages of the Cram\'er-Lundberg model, namely the constant jump intensity of the Poisson process. Due to this…

Probability · Mathematics 2022-05-11 Simon Pojer , Stefan Thonhauser

In this work, we consider extensions of the dual risk model with proportional gains by introducing a dependence structure between gain sizes and gain interrarrival times. Among others, we further consider the case where the proportional…

Probability · Mathematics 2025-04-23 Ioannis Dimitriou

In this paper, we define a compound generalized fractional counting process (CGFCP) which is a generalization of the compound versions of several well-known fractional counting processes. We obtain its mean, variance, and the fractional…

Probability · Mathematics 2024-05-21 Ritik Soni , Ashok Kumar Pathak

The fractional Poisson process is a renewal process with Mittag-Leffler waiting times. Its distributions solve a time-fractional analogue of the Kolmogorov forward equation for a Poisson process. This paper shows that a traditional Poisson…

Probability · Mathematics 2011-10-14 Mark M. Meerschaert , Erkan Nane , P. Vellaisamy

We analyze the probability of ruin for the {\it scaled} classical Cram\'er-Lundberg (CL) risk process and the corresponding diffusion approximation. The scaling, introduced by Iglehart \cite{I1969} to the actuarial literature, amounts to…

Optimization and Control · Mathematics 2020-06-18 Asaf Cohen , Virginia R. Young

We study the connection between PDEs and L\'{e}vy processes running with clocks given by time-changed Poisson processes with stochastic drifts. The random times we deal with are therefore given by time-changed Poissonian jumps related to…

Probability · Mathematics 2014-01-15 Luisa Beghin , Mirko D'Ovidio

The collective risk model differentiates usually between claims frequencies (and their distribution) and claim sizes (and their distribution). For the claims frequencies typically classical discrete distributions are considered, such as…

Risk Management · Quantitative Finance 2023-09-12 Dietmar Pfeifer

We study a Sparre Andersen model in which the business activity of the company is described by a compound renewal process with drift assuming that the capital reserves are invested in a risky asset. The price of the latter is assumed to…

Probability · Mathematics 2020-12-15 Ernst Eberlain , Yuri Kabanov , Thorsten Schmidt

We consider a fractional counting process with jumps of amplitude $1,2,\ldots,k$, with $k\in \mathbb{N}$, whose probabilities satisfy a suitable system of fractional difference-differential equations. We obtain the moment generating…

Probability · Mathematics 2016-03-10 Antonio Di Crescenzo , Barbara Martinucci , Alessandra Meoli

Recently, a marked Poisson process (MPP) model for life catastrophe risk was proposed in [6]. We provide a justification and further support for the model by considering more general Poisson point processes in the context of extreme value…

Risk Management · Quantitative Finance 2013-11-01 Matias Leppisaari

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

We study the problem of optimal risk policies and dividend strategies for an insurance company operating under the constraint that the timing of shareholder payouts is governed by the arrival times of a Poisson process. Concurrently, risk…

Optimization and Control · Mathematics 2025-02-19 Mark Kelbert , Harold A. Moreno-Franco

This article proposes a method for measuring the latent risks involved in the recovery process of non performing loans in financial institutions and business firms that deal with collection and recovery processes. To that end, we apply the…

Applications · Statistics 2014-08-20 Mauro R. Oliveira , Francisco Louzada

This paper introduces a discrete-time fractional Poisson process defined as a renewal process, where the waiting times follow a discrete Mittag-Leffler distribution. We investigate its fundamental properties by explicitly deriving the…

Probability · Mathematics 2026-05-06 Naohiro Yoshida

We present some correlated fractional counting processes on a finite time interval. This will be done by considering a slight generalization of the processes in Borges et al. (2012). The main case concerns a class of space-time fractional…

Probability · Mathematics 2014-11-10 Luisa Beghin , Roberto Garra , Claudio Macci