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In this paper, we introduce an insurance ruin model with adaptive premium rate, thereafter refered to as restructuring/refraction, in which classical ruin and bankruptcy are distinguished. In this model, the premium rate is increased as…

Probability · Mathematics 2013-06-21 Jean-François Renaud

In this article, we introduce a new definition of bankruptcy for a spectrally negative L\'evy insurance risk process. More precisely, we study the Gerber-Shiu distribution for a ruin model where at each time the surplus goes negative, an…

Probability · Mathematics 2015-07-28 Juan Carlos Pardo , Jose Luis Perez , Victor Rivero

Recent studies have demonstrated an interesting connection between the asymptotic behavior at ruin of a L\'evy insurance risk process under the Cram\'er-Lundberg and convolution equivalent conditions. For example, the limiting distributions…

Probability · Mathematics 2016-01-08 Philip S. Griffin

The field of risk theory has traditionally focused on ruin-related quantities. In particular, the socalled Expected Discounted Penalty Function has been the object of a thorough study over the years. Although interesting in their own right,…

Risk Management · Quantitative Finance 2014-06-27 Zied Ben-Salah , Hélène Guérin , Manuel Morales , Hassan Omidi Firouzi

In this paper we study the joint ruin problem for two insurance companies that divide between them both claims and premia in some specified proportions (modeling two branches of the same insurance company or an insurance and re-insurance…

Probability · Mathematics 2007-11-16 Florin Avram , Zbigniew Palmowski , Martijn Pistorius

This paper investigates an insurance model with a finite number of major clients and a large number of small clients, where the dynamics of the latter group are modeled by a spectrally positive L\'evy process. We begin by analyzing this…

Probability · Mathematics 2025-05-19 Michel Mandjes , Daniël Rutgers

We derive formulas for the moments of the ruin time in a L\'evy risk model and use these to determine the asymptotic behavior of the moments of the ruin time as the initial capital tends to infinity. In the special case of the perturbed…

Probability · Mathematics 2022-08-02 Philipp Lukas Strietzel , Anita Behme

In this note we find a formula for the supremum distribution of spectrally positive or negative L\'evy processes with a broken linear drift. This gives formulas for ruin probabilities in the case when two insurance companies (or two…

Probability · Mathematics 2019-01-01 Zbigniew Michna

This paper discusses Parisian ruin problem with capital injection for Levy insurance risk process. Capital injection takes place at the draw-down time of the surplus process when it drops below a pre-specified function of its last record…

Mathematical Finance · Quantitative Finance 2020-05-20 Budhi Surya , Wenyuan Wang , Xianghua Zhao , Xiaowen Zhou

The Gerber-Shiu function provides a way of measuring the risk of an insurance company. It is given by the expected value of a function that depends on the ruin time, the deficit at ruin, and the surplus prior to ruin. Its computation…

Computational Finance · Quantitative Finance 2017-01-12 Kazutoshi Yamazaki

This paper presents some new results on Parisian ruin under Levy insurance risk process, where ruin occurs when the process has gone below a fixed level from the last record maximum, also known as the high-water mark or drawdown, for a…

Probability · Mathematics 2018-06-07 B. A. Surya

This paper considers a Cram\'er-Lundberg risk setting, where the components of the underlying model change over time. These components could be thought of as the claim arrival rate, the claim-size distribution, and the premium rate, but we…

Probability · Mathematics 2019-06-10 Corina Constantinescu , Guusje Delsing , Michel Mandjes , Leonardo Rojas Nandayapa

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 continuous time risk processes in which the claim sizes are dependent and non-identically distributed phase-type distributions. The class of distributions we propose is easy to characterize and allows to incorporate the…

Probability · Mathematics 2023-07-28 Oscar Peralta , Matthieu Simon

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 formulate the insurance risk process in a general Levy process setting, and give general theorems for the ruin probability and the asymptotic distribution of the overshoot of the process above a high level, when the process drifts to…

Probability · Mathematics 2007-05-23 Claudia Kluppelberg , Andreas E. Kyprianou , Ross A. Maller

Inspired by works of Landriault et al. \cite{LRZ-0, LRZ}, we study discounted penalties at ruin for surplus dynamics driven by a spectrally negative L\'evy process with Parisian implementation delays. To be specific, we study the so-called…

Probability · Mathematics 2015-03-13 E. J. Baurdoux , J. C. Pardo , J. L. Pérez , J. -F. Renaud

The classical Cram\'er-Lundberg risk process models the ruin probability of an insurance company experiencing an incoming cash flow - the premium income, and an outgoing cash flow - the claims. From a system's viewpoint, the web of…

Probability · Mathematics 2021-04-13 Rukuang Huang

We analyze the general L\'{e}vy insurance risk process for L\'{e}vy measures in the convolution equivalence class $\mathcal{S}^{(\alpha)}$, $\alpha>0$, via a new kind of path decomposition. This yields a very general functional limit…

Probability · Mathematics 2012-08-22 Philip S. Griffin , Ross A. Maller

In ruin theory, the net profit condition intuitively means that the incurred random claims on average do not occur more often than premiums are gained. The breach of the net profit condition causes guaranteed ruin in few but simple cases…

Probability · Mathematics 2024-01-08 Andrius Grigutis , Arvydas Karbonskis , Jonas Šiaulys
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