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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

The optimal stopping problem for the risk process with interests rates and when claims are covered immediately is considered. An insurance company receives premiums and pays out claims which have occured according to a renewal process and…

Probability · Mathematics 2008-12-23 Bogdan K. Muciek , Krzysztof J. Szajowski

In the classical static optimal reinsurance problem, the cost of capital for the insurer's risk exposure determined by a monetary risk measure is minimized over the class of reinsurance treaties represented by increasing Lipschitz retained…

Risk Management · Quantitative Finance 2020-12-18 Alexander Glauner

This paper investigates a robust optimal consumption, investment, and reinsurance problem for an insurer with Epstein-Zin recursive preferences operating under model uncertainty. The insurer's surplus follows the diffusion approximation of…

Optimization and Control · Mathematics 2025-11-06 Elizabeth Dadzie , Wilfried Kuissi-Kamdem , Marcel Ndengo

We use the randomization idea and proof techniques from optimal transport to study optimal reinsurance problems. We start by providing conditions for a class of problems that allow us to characterize the support of optimal treaties, and…

Optimization and Control · Mathematics 2024-11-04 Beatrice Acciaio , Hansjörg Albrecher , Brandon García Flores

We study an optimal reinsurance problem under a diffusion risk model for an insurer who aims to minimize the probability of lifetime ruin. To rule out moral hazard issues, we only consider moral-hazard-free reinsurance contracts by imposing…

Mathematical Finance · Quantitative Finance 2023-04-19 Zhuo Jin , Zuo Quan Xu , Bin Zou

This paper studies an optimal reinsurance problem for a utility-maximizing insurer, subject to the reinsurer's endogenous default and background risk. An endogenous default occurs when the insurer's contractual indemnity exceeds the…

Risk Management · Quantitative Finance 2026-02-25 Zongxia Liang , Zhaojie Ren , Bin Zou

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

We consider the optimal reinsurance problem from the point of view of a direct insurer owning several dependent risks, assuming a maximal expected utility criterion and independent negotiation of reinsurance for each risk. Without any…

Probability · Mathematics 2021-06-16 Manuel Guerra , Alexandra B. Moura

In this paper, we investigate the robust optimal reinsurance,investment,and internal surplus distribution (i.e., consumption) problem for an insurer with Epstein-Zin recursive preferences in an incomplete market. It is assumed that the…

Optimization and Control · Mathematics 2026-05-19 Junyi Guo , Jianxuan Li , Qianqian Zhou

In this paper, we study two optimisation settings for an insurance company, under the constraint that the terminal surplus at a deterministic and finite time $T$ follows a normal distribution with a given mean and a given variance. In both…

Mathematical Finance · Quantitative Finance 2022-06-13 Katia Colaneri , Julia Eisenberg , Benedetta Salterini

We study optimal reinsurance in the framework of stochastic game theory, in which there is an insurer and two reinsurers. A Stackelberg model is established to analyze the non-cooperative relationship between the insurer and reinsurers,…

Mathematical Finance · Quantitative Finance 2023-05-02 Liyuan Lin , Fangda Liu , Jingzhen Liu abd Luyang Yu

In this work we investigate the optimal proportional reinsurance-investment strategy of an insurance company which wishes to maximize the expected exponential utility of its terminal wealth in a finite time horizon. Our goal is to extend…

Risk Management · Quantitative Finance 2019-04-04 Matteo Brachetta , Claudia Ceci

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 study an optimal stopping problem with an unbounded, time-dependent and discontinuous reward function. This problem is motivated by the pricing of a variable annuity contract with guaranteed minimum maturity benefit, under the assumption…

Mathematical Finance · Quantitative Finance 2026-03-10 Anne Mackay , Marie-Claude Vachon

In this paper, we investigate the problem of optimal strategies of dividend and reinsurance under the Cram\'{e}r-Lundberg risk model embedded with the thinning-dependence structure which was firstly introduced by Wang and Yuen (2005),…

Optimization and Control · Mathematics 2020-07-02 Mi Chen , Kam Chuen Yuen , Wenyuan Wang

In this paper, we consider the problem of optimal reinsurance design, when the risk is measured by a distortion risk measure and the premium is given by a distortion risk premium. First, we show how the optimal reinsurance design for the…

Risk Management · Quantitative Finance 2014-06-12 Hirbod Assa

I analyze long-term contracting in insurance markets with asymmetric information. The buyer privately observes her risk type, which evolves stochastically over time. A long-term contract specifies a menu of insurance policies, contingent on…

Theoretical Economics · Economics 2022-09-01 Vitor Farinha Luz

We consider an investor who wants to select her/his optimal consumption, investment and insurance policies. Motivated by new insurance products, we allow not only the financial marke but also the insurable loss to depend on the regime of…

Risk Management · Quantitative Finance 2014-06-25 Bin Zou , Abel Cadenillas

In this paper, we study an optimal reinsurance-investment problem in a risk model with two dependent classes of insurance business, where the two claim number processes are correlated through a common shock component. We assume that the…

Optimization and Control · Mathematics 2020-10-26 Xia Han , Zhibin Liang
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