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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

We consider the problem of estimating the joint distribution of $n$ independent random variables. Our approach is based on a family of candidate probabilities that we shall call a model and which is chosen to either contain the true…

Statistics Theory · Mathematics 2021-06-01 Yannick Baraud

We study a reinsurer who faces multiple sources of model uncertainty. The reinsurer offers contracts to $n$ insurers whose claims follow compound Poisson processes representing both idiosyncratic and systemic sources of loss. As the…

Risk Management · Quantitative Finance 2024-10-03 Emma Kroell , Sebastian Jaimungal , Silvana M. Pesenti

This paper gives a method for computing distributions associated with patterns in the state sequence of a hidden Markov model, conditional on observing all or part of the observation sequence. Probabilities are computed for very general…

Methodology · Statistics 2007-12-18 John A. D. Aston , Donald E. K. Martin

Let (X_n,Y_n), n\ge 1 be bivariate random claim sizes with common distribution function F and let N(t), t \ge 0 be a stochastic process which counts the number of claims that occur in the time interval [0,t], t\ge 0. In this paper we derive…

Probability · Mathematics 2007-06-13 Enkelejd Hashorva

We study a dynamic model of a non-life insurance portfolio. The foundation of the model is a compound Poisson process that represents the claims side of the insurer. To introduce clusters of claims appearing, e.g. with catastrophic events,…

Risk Management · Quantitative Finance 2026-03-03 Jonathan Klinge , Maren Diane Schmeck

We consider quantile estimation using Markov chain Monte Carlo and establish conditions under which the sampling distribution of the Monte Carlo error is approximately Normal. Further, we investigate techniques to estimate the associated…

Statistics Theory · Mathematics 2018-04-20 Charles Doss , James M. Flegal , Galin L. Jones , Ronald C. Neath

Asymptotic properties of Markov Processes, such as steady state probabilities or hazard rate for absorbing states can be efficiently calculated by means of linear algebra even for large-scale problems. This paper discusses the methods for…

Performance · Computer Science 2017-05-17 Vitali Volovoi

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

Hidden Markov models are versatile tools for modeling sequential observations, where it is assumed that a hidden state process selects which of finitely many distributions generates any given observation. Specifically for time series of…

Methodology · Statistics 2019-01-11 Timo Adam , Roland Langrock , Christian H. Weiß

The distribution-free chain ladder of Mack justified the use of the chain ladder predictor and enabled Mack to derive an estimator of conditional mean squared error of prediction for the chain ladder predictor. Classical insurance loss…

Risk Management · Quantitative Finance 2023-10-19 Nils Engler , Filip Lindskog

The paper is concerned with the equilibrium distributions of continuous-time density dependent Markov processes on the integers. These distributions are known typically to be approximately normal, and the approximation error, as measured in…

Probability · Mathematics 2009-02-06 Sanda N. Socoll , A. D. Barbour

The paper proposes an original methodology for constructing quantitative statistical models based on multidimensional distribution functions constructed on the basis of the insurance companies' data on inshurance policies (including…

Risk Management · Quantitative Finance 2019-08-15 Valery Baskakov , Nikolay Sheparnev , Evgeny Yanenko

Contemporary insurance theory is concentrated on models with different types of polices and shock events may influence the payments on some of them. Jordanova (2018) considered a model where a shock event contributes to the total claim…

Probability · Mathematics 2022-06-28 Pavlina Jordanova , Evelina Veleva , Kosto Mitov

This article shows how coupled Markov chains that meet exactly after a random number of iterations can be used to generate unbiased estimators of the solutions of the Poisson equation. Through this connection, we re-derive known unbiased…

Computation · Statistics 2025-12-10 Randal Douc , Pierre E. Jacob , Anthony Lee , Dootika Vats

Data on a continuous variable are often summarized by means of histograms or displayed in tabular format: the range of data is partitioned into consecutive interval classes and the number of observations falling within each class is…

Methodology · Statistics 2023-01-05 Philippe Lambert

The sum of symmetric Markov dependent three-point random variables is approximated by the difference of two independent Poisson random variables (Skellam random variable). The accuracy is estimated in local, total variation and Wasserstein…

Probability · Mathematics 2024-04-29 Vydas Čekanavičius , Gabija Liaudanskaite

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

Let $X_1,X_2,...,X_n$ be a sequence of independent or locally dependent random variables taking values in $\mathbb{Z}_+$. In this paper, we derive sharp bounds, via a new probabilistic method, for the total variation distance between the…

Statistics Theory · Mathematics 2010-10-11 Michael V. Boutsikas , Eutichia Vaggelatou

We present an analytical study of an insurance company. We model the company's performance on a statistical basis and evaluate the predicted annual income of the company in terms of insurance parameters namely the premium, total number of…

Statistical Mechanics · Physics 2008-12-10 M. Ebrahim Fouladvand , Amir H. Darooneh