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We investigate models of the life annuity insurance when the company invests its reserve into a risky asset with price following a geometric Brownian motion. Our main result is an exact asymptotic of the ruin probabilities for the case of…

Probability · Mathematics 2015-05-19 Yuri Kabanov , Serguei Pergamenshchikov

We deal with a generalization of the classical risk model when an insurance company gets additional funds whenever a claim arrives and consider some practical approaches to the estimation of the ruin probability. In particular, we get an…

Probability · Mathematics 2015-03-19 Yuliya Mishura , Olena Ragulina , Oleksandr Stroyev

A continuous-time random walk in the quarter plane with homogeneous transition rates is considered. Given a non-negative reward function on the state space, we are interested in the expected stationary performance. Since a direct derivation…

Probability · Mathematics 2017-08-31 Xinwei Bai , Jasper Goseling

A nonhomogeneous hidden semi-Markov model is proposed to segment toroidal time series according to a finite number of latent regimes and, simultaneously, estimate the influence of time-varying covariates on the process' survival under each…

Applications · Statistics 2023-12-25 Francesco Lagona , Marco Mingione

In this short note, we derive explicit formulas for the joint densities of the time to ruin and the number of claims until ruin in perturbed classical risk models, by constructing several auxiliary random processes.

Probability · Mathematics 2016-08-22 Peng Liu , Chunsheng Zhang , Lanpeng Ji

In this note we consider the two-dimensional risk model introduced in Avram et al. \cite{APP08} with constant interest rate. We derive the integral-differential equations of the Laplace transforms, and asymptotic expressions for the finite…

Probability · Mathematics 2012-07-17 Ze-Chun Hu , Bin Jiang

Machine learning algorithms with empirical risk minimization usually suffer from poor generalization performance due to the greedy exploitation of correlations among the training data, which are not stable under distributional shifts.…

Machine Learning · Computer Science 2021-06-18 Jiashuo Liu , Zheyuan Hu , Peng Cui , Bo Li , Zheyan Shen

One of the most important empirical findings in microeconometrics is the pervasiveness of heterogeneity in economic behaviour (cf. Heckman 2001). This paper shows that cumulative distribution functions and quantiles of the nonparametric…

Econometrics · Economics 2020-05-19 Juan Carlos Escanciano

Consider an insurance company exposed to a stochastic economic environment that contains two kinds of risk. The first kind is the insurance risk caused by traditional insurance claims, and the second kind is the financial risk resulting…

Statistics Theory · Mathematics 2015-07-29 Jinzhu Li , Qihe Tang

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 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

In this paper, we generalise the results presented in the literature for the ruin probability for the insurer--reinsurer model under a pro-rata reinsurance contract. We consider claim amounts that are described by a phase-type distribution…

Mathematical Finance · Quantitative Finance 2023-03-15 Krzysztof Burnecki , Zbigniew Palmowski , Marek Teuerle , Aleksandra Wilkowska

The paper develops a novel and general methodology to characterize the nonlinearity of structural systems and to provide a mathematically proven basis for applying partial safety factors to nonlinear structural systems. It establishes, for…

Applications · Statistics 2022-12-06 Tammam Bakeer

We investigate the asymptotic of ruin probabilities when the company invests its reserve in a risky asset with a switching regime price. We assume that the asset price is a conditional geometric Brownian motion with parameters modulated by…

Probability · Mathematics 2021-10-19 Yuri Kabanov , Serguei Pergamenshchikov

We study the multiplicative hazards model with intermittently observed longitudinal covariates and time-varying coefficients. For such models, the existing ad hoc approach, such as the last value carried forward, is biased. We propose a…

Methodology · Statistics 2025-03-13 Zhuowei Sun , Hongyuan Cao

Time to event outcomes are often evaluated on the hazard scale, but interpreting hazards may be difficult. Recently, there has been concern in the causal inference literature that hazards actually have a built in selection-effect that…

Methodology · Statistics 2020-02-07 Pål Christie Ryalen , Mats Julius Stensrud , Kjetil Røysland

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

Linear mixed models (LMMs) are a popular class of methods for analyzing longitudinal and clustered data. However, such models can be sensitive to outliers, and this can lead to biased inference on model parameters and inaccurate prediction…

Methodology · Statistics 2025-03-28 Shonosuke Sugasawa , Francis K. C. Hui , Alan H. Welsh

In many instances, information on engineering systems can be obtained through measurements, monitoring or direct observations of system performances and can be used to update the system reliability estimate. In structural reliability…

Methodology · Statistics 2012-03-27 Daniel Straub

This paper presents a novel numerical method for the hybrid reliability analysis by using the uncertainty theory. Aleatory uncertainty and epistemic uncertainty are considered simultaneously in this method. Epistemic uncertainty is…

Computational Engineering, Finance, and Science · Computer Science 2020-09-18 Lei Zhang