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Related papers: Fractional Risk Process in Insurance

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Consider a surplus process which both of collected premium and payed claim size are two independent compound Poisson processes. This article derives two approximated formulas for the ruin probability of such surplus process, say double…

Probability · Mathematics 2017-01-20 Amir T. Payandeh Najafabadi , Dan Kucerovsky

In this paper the utility optimization problem for a general insurance model is studied. The reserve process of the insurance company is described by a stochastic differential equation driven by a Brownian motion and a Poisson random…

Probability · Mathematics 2009-09-01 Yuping Liu , Jin Ma

In this paper, we consider a fractional Poisson random field (FPRF) on positive plane. It is defined as a process whose one dimensional distribution is the solution of a system of fractional partial differential equations. A time-changed…

Probability · Mathematics 2024-07-23 K. K. Kataria , P. Vishwakarma

This paper concerns an insurance firm's surplus process observed at renewal inspection times, with a focus on assessing the probability of the surplus level dropping below zero. For various types of inter-inspection time distributions, an…

Probability · Mathematics 2026-01-14 Florine Kuipers , Michel Mandjes , Sara Morcy

We generate the fractional Poisson process by subordinating the standard Poisson process to the inverse stable subordinator. Our analysis is based on application of the Laplace transform with respect to both arguments of the evolving…

Probability · Mathematics 2013-05-24 Rudolf Gorenflo , Francesco Mainardi

In many complex systems studied in statistical physics, inter-arrival times between events such as solar flares, trades and neuron voltages follow a heavy-tailed distribution. The set of event times is fractal-like, being dense in some time…

Statistics Theory · Mathematics 2020-09-16 Katharina Hees , Smarak Nayak , Peter Straka

Multivariate Poisson processes have many important applications in Insurance, Finance, and many other areas of Applied Probability. In this paper we study the backward simulation approach to modelling multivariate Poisson processes and…

Methodology · Statistics 2017-10-30 Michael Chiu , Kenneth R. Jackson , Alexander Kreinin

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

The fractional Poisson process (FPP) generalizes the standard Poisson process by replacing exponentially distributed return times with Mittag-Leffler distributed ones with an extra tail parameter, allowing for greater flexibility. The FPP…

Applications · Statistics 2025-11-12 Merle Mendel , Roland Fried

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

Random fields are useful mathematical tools for representing natural phenomena with complex dependence structures in space and/or time. In particular, the Gaussian random field is commonly used due to its attractive properties and…

This paper considers a variant of the classical Cram\'er-Lundberg model that is particularly appropriate in the credit context, with the distinguishing feature that it corresponds to a finite number of obligors. The focus is on computing…

Probability · Mathematics 2020-12-07 Guusje Delsing , Michel Mandjes

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

In a dual risk model, the premiums are considered as the costs and the claims are regarded as the profits. The surplus can be interpreted as the wealth of a venture capital, whose profits depend on research and development. In most of the…

Risk Management · Quantitative Finance 2024-12-02 Lingjiong Zhu

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

We study different fractional extensions of the Poisson process and generalized counting processes by introducing time-change represented by the inverse to the sums of stable and tempered stable subordinators. We state the governing…

Probability · Mathematics 2026-04-02 Lyudmyla Sakhno , Artem Storozhuk

We present new properties for the Fractional Poisson process and the Fractional Poisson field on the plane. A martingale characterization for Fractional Poisson processes is given. We extend this result to Fractional Poisson fields,…

Probability · Mathematics 2018-01-30 Giacomo Aletti , Nikolai Leonenko , Ely Merzbach

Epidemic models are used to analyze the progression or outcome of an epidemic under different control policies like vaccinations, quarantines, lockdowns, use of face-masks, pharmaceutical interventions, etc. When these models accurately…

Quantitative Methods · Quantitative Biology 2022-04-19 Carlos Hernandez-Suarez , Osval Montsinos Lopez , Ramon Solano-Barajas

The fractional Poisson process has recently attracted experts from several fields of study. Its natural generalization of the ordinary Poisson process made the model more appealing for real-world applications. In this paper, we generalized…

Probability · Mathematics 2014-03-06 Dexter O. Cahoy , Federico Polito

We use standard physics techniques to model trading and price formation in a market under the assumption that order arrival and cancellations are Poisson random processes. This model makes testable predictions for the most basic properties…

Statistical Mechanics · Physics 2013-05-29 Marcus G. Daniels , J. Doyne Farmer , Laszlo Gillemot , Giulia Iori , Eric Smith