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Background: Chronic diseases impose a sustained burden on healthcare systems through progressive deterioration and long-term costs. Although adherence-enhancing interventions are widely promoted, their return on investment (ROI) remains…

General Finance · Quantitative Finance 2025-10-09 Jinho Cha , Eunchan D. Cha , Emily Yoo , Hyoshin Song

In this paper we study the optimal investment and reinsurance problem of an insurance company whose investment preferences are described via a forward dynamic exponential utility in a regime-switching market model. Financial and actuarial…

Portfolio Management · Quantitative Finance 2021-06-29 Katia Colaneri , Alessandra Cretarola , Benedetta Salterini

This paper investigates robust stochastic differential games among insurers under model uncertainty and stochastic volatility. The surplus processes of ambiguity-averse insurers (AAIs) are characterized by drifted Brownian motion with both…

Mathematical Finance · Quantitative Finance 2024-12-13 Guohui Guan , Zongxia Liang , Yi Xia

In many important applications of precision medicine, the outcome of interest is time to an event (e.g., death, relapse of disease) and the primary goal is to identify the optimal individualized decision rule (IDR) to prolong survival time.…

Methodology · Statistics 2022-04-11 Yu Zhou , Lan Wang , Rui Song , Tuoyi Zhao

Under losses which are potentially heavy-tailed, we consider the task of minimizing sums of the loss mean and standard deviation, without trying to accurately estimate the variance. By modifying a technique for variance-free robust mean…

Machine Learning · Statistics 2024-02-12 Matthew J. Holland

The aim of this paper is to propose a realistic and operational model to quantify the systematic risk of mortality included in an engagement of retirement. The model presented is built on the basis of model of Lee-Carter. The stochastic…

General Finance · Quantitative Finance 2010-01-13 Frédéric Planchet , Marc Juillard

This paper analyzes a novel type of mortality contingent-claim called a ruin-contingent life annuity (RCLA). This product fuses together a path-dependent equity put option with a "personal longevity" call option. The annuitant's (i.e. long…

Pricing of Securities · Quantitative Finance 2018-11-27 Huaxiong Huang , Moshe A. Milevsky , Thomas S. Salisbury

We study the discrete-time linear-quadratic (LQ) control model using reinforcement learning (RL). Using entropy to measure the cost of exploration, we prove that the optimal feedback policy for the problem must be Gaussian type. Then, we…

Machine Learning · Statistics 2025-02-05 Lucky Li

Recently, a marked Poisson process (MPP) model for life catastrophe risk was proposed in [6]. We provide a justification and further support for the model by considering more general Poisson point processes in the context of extreme value…

Risk Management · Quantitative Finance 2013-11-01 Matias Leppisaari

This paper develops a dynamic equilibrium model of the insurance market that jointly characterizes insurers' underwriting, investment, recapitalization, and dividend policies under model uncertainty and financial frictions. Competitive…

Risk Management · Quantitative Finance 2026-03-20 Bingzheng Chen , Jan Dhaene , Chun Liu , Shunzhi Pang

In this paper, we consider the asset-liability management under the mean-variance criterion. The financial market consists of a risk-free bond and a stock whose price process is modeled by a geometric Brownian motion. The liability of the…

Risk Management · Quantitative Finance 2013-05-01 Qian Zhao , Jiaqin Wei , Rongming Wang

This paper studies the optimal investment problem for a hybrid pension plan under model uncertainty, where both the contribution and the benefit are adjusted depending on the performance of the plan. Furthermore, an age and time-dependent…

Optimization and Control · Mathematics 2023-02-07 Ke Fu , Ximin Rong , Hui Zhao

In this paper, an optimization problem for the monotone mean-variance(MMV) criterion is considered in the perspective of the insurance company. The MMV criterion is an amended version of the classical mean-variance(MV) criterion which…

Optimization and Control · Mathematics 2022-12-05 Bohan Li , Junyi Guo , Linlin Tian

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 investigates the valuation of variable annuity contracts with an early surrender option under non-Markovian models. Moreover, policyholders are provided with guaranteed minimum maturity and death benefits to protect against the…

Computational Finance · Quantitative Finance 2026-04-23 Wenyuan Li , Haoqi Lyu

Covariate adjustment is desired by both practitioners and regulators of randomized clinical trials because it improves precision for estimating treatment effects. However, covariate adjustment presents a particular challenge in…

Methodology · Statistics 2023-07-20 Yunfan Li , Jessica L. Ross , Aaron M. Smith , David P. Miller

We consider continuous-time mean-variance portfolio selection with bankruptcy prohibition under convex cone portfolio constraints. This is a long-standing and difficult problem not only because of its theoretical significance, but also for…

Portfolio Management · Quantitative Finance 2015-07-27 Xun Li , Zuo Quan Xu

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 Regression Discontinuity (RD) design, self-selection leads to different distributions of covariates on two sides of the policy intervention, which essentially violates the continuity of potential outcome assumption. The standard RD…

Methodology · Statistics 2019-11-22 Sida Peng , Yang Ning

Recent studies have identified long-range dependence as a key feature in the dynamics of both mortality and interest rates. Building on this insight, we develop a novel bi-variate stochastic framework based on mixed fractional Brownian…

Risk Management · Quantitative Finance 2025-08-26 Kenneth Q. Zhou , Hongjuan Zhou