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We propose a model in which, in exchange to the payment of a fixed transaction cost, an insurance company can choose the retention level as well as the time at which subscribing a perpetual reinsurance contract. The surplus process of the…

Optimization and Control · Mathematics 2024-02-13 Salvatore Federico , Giorgio Ferrari , Maria-Laura Torrente

We consider the robust contract design problem when the principal only has limited information about the actions the agent can take. The principal evaluates a contract according to its worst-case performance caused by the uncertain action…

Theoretical Economics · Economics 2024-06-18 Bo Peng , Zhihao Gavin Tang

We study the optimal excess-of-loss reinsurance problem when both the intensity of the claims arrival process and the claim size distribution are influenced by an exogenous stochastic factor. We assume that the insurer's surplus is governed…

Mathematical Finance · Quantitative Finance 2019-04-12 Matteo Brachetta , Claudia Ceci

We introduce a two-agent problem which is inspired by price asymmetry arising from funding difference. When two parties have different funding rates, the two parties deduce different fair prices for derivative contracts even under the same…

Mathematical Finance · Quantitative Finance 2020-01-01 Junbeom Lee , Stephan Sturm , Chao Zhou

This paper considers optimal control problem of a large insurance company under a fixed insolvency probability. The company controls proportional reinsurance rate, dividend pay-outs and investing process to maximize the expected present…

Risk Management · Quantitative Finance 2010-06-01 Zongxia Liang , Jianping Huang

A usual reinsurance policy for insurance companies admits one or two layers of the payment deductions. Under optimal criterion of minimizing the conditional tail expectation (CTE) risk measure of the insurer's total risk, this article…

Methodology · Statistics 2017-01-24 Amir T. Payandeh Najafabadi , Ali Panahi Bazaz

We propose a two-layer stochastic game model to study reinsurance contracting and competition in a market with one insurer and two competing reinsurers. The insurer negotiates with both reinsurers simultaneously for proportional reinsurance…

Mathematical Finance · Quantitative Finance 2024-09-23 Zongxia Liang , Yi Xia , Bin Zou

In this paper, we study an optimal excess-of-loss reinsurance and investment problem for an insurer in defaultable market. The insurer can buy reinsurance and invest in the following securities: a bank account, a risky asset with stochastic…

Portfolio Management · Quantitative Finance 2017-04-27 Nian Yao , Zhiming Yang

In this paper, we construct a solution to the optimal contract problem for delegated portfolio management of the fist-best (risk-sharing) type. The novelty of our result is (i) in the robustness of the optimal contract with respect to…

Portfolio Management · Quantitative Finance 2018-02-27 Sergey Nadtochiy , Thaleia Zariphopoulou

We study the problem of maximizing a spectral risk measure of a given output function which depends on several underlying variables, whose individual distributions are known but whose joint distribution is not. We establish and exploit an…

Optimization and Control · Mathematics 2022-11-16 Hamza Ennaji , Quentin Mérigot , Luca Nenna , Brendan Pass

We present a general approach to the pricing of products in finance and insurance in the multi-period setting. It is a combination of the utility indifference pricing and optimal intertemporal risk allocation. We give a characterization of…

Pricing of Securities · Quantitative Finance 2008-12-02 Kei Fukuda , Akihiko Inoue , Yumiharu Nakano

In this article we consider the surplus process of an insurance company within the Cramer-Lundberg framework. We study the optimal reinsurance strategy and dividend distribution of an insurance company under proportional reinsurance, in…

Optimization and Control · Mathematics 2026-05-22 Zakaria Aljaberi , Asma Khedher , Mohamed Mnif

In this paper, we consider the robust optimal reinsurance investment problem of the insurer under the $\alpha$-maxmin mean-variance criterion in the defaultable market. The financial market consists of risk-free bonds, a stock and a…

Optimization and Control · Mathematics 2021-12-09 Min Zhang , Yong He

We investigate the optimal investment-reinsurance problem for insurance company with partial information on the market price of the risk. Through the use of filtering techniques we convert the original optimization problem involving…

Portfolio Management · Quantitative Finance 2024-08-15 Claudia Ceci , Katia Colaneri

This note presents a kind of the strong law of large numbers for an insurance risk caused by a single catastrophic event rather than by an accumulation of independent and identically distributed risks. We derive this result by a large…

Risk Management · Quantitative Finance 2016-01-14 Yumiharu Nakano

We mathematically demonstrate how and what it means for two collective pension funds to mutually insure one another against systematic longevity risk. The key equation that facilitates the exchange of insurance is a market clearing…

Mathematical Finance · Quantitative Finance 2024-10-11 John Armstrong , James Dalby

We study the modelling and valuation of surrender and other behavioural options in life insurance and pension. We place ourselves in between the two extremes of completely arbitrary intervention and optimal intervention by the policyholder.…

Mathematical Finance · Quantitative Finance 2014-12-08 Kamille Sofie Tågholt Gad , Jeppe Juhl , Mogens Steffensen

This paper studies an optimal investment-reinsurance problem for an insurer (she) under the Cram\'er--Lundberg model with monotone mean--variance (MMV) criterion. At any time, the insurer can purchase reinsurance (or acquire new business)…

Portfolio Management · Quantitative Finance 2024-05-30 Xiaomin Shi , Zuo Quan Xu

We study a stochastic differential game in a ruin theoretic environment. In our setting two insurers compete for market share, which is represented by a joint performance functional. Consequently, one of the insurers strives to maximize it,…

Optimization and Control · Mathematics 2025-03-27 Lea Enzi , Stefan Thonhauser

In this paper, we examine the effect of background risk on portfolio selection and optimal reinsurance design under the criterion of maximizing the probability of reaching a goal. Following the literature, we adopt dependence uncertainty to…

Risk Management · Quantitative Finance 2022-01-06 Yichun Chi , Zuo Quan Xu , Sheng Chao Zhuang