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The insurance model when the amount of claims depends on the state of the insured person (healthy, ill, or dead) and claims are connected in a Markov chain is investigated. The signed compound Poisson approximation is applied to the…

Probability · Mathematics 2020-01-13 Gabija Liaudanskaitė , Vydas Čekanavičius

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

The Chain-Ladder (CL) method remains the dominant macro-level technique for claims reserving in non-life insurance, yet its classical formulation lacks a coherent probabilistic foundation. Existing stochastic extensions-including the Mack…

Methodology · Statistics 2026-05-18 Robin Van Oirbeek

Consider two insurance companies (or two branches of the same company) that divide between them both claims and premia in some specified proportions. We model the occurrence of claims according to a renewal process. One ruin problem…

Probability · Mathematics 2009-01-16 Florin Avram , Zbigniew Palmowski , Martijn R. Pistorius

We investigate an insurance risk model that consists of two reserves which receive income at fixed rates. Claims are being requested at random epochs from each reserve and the interclaim times are generally distributed. The two reserves are…

Probability · Mathematics 2015-08-05 E. S. Badila , O. J. Boxma , J. A. C. Resing

The collective risk model differentiates usually between claims frequencies (and their distribution) and claim sizes (and their distribution). For the claims frequencies typically classical discrete distributions are considered, such as…

Risk Management · Quantitative Finance 2023-09-12 Dietmar Pfeifer

If a given aggregate process $S$ is a compound mixed renewal process under a probability measure $P$, we provide a characterization of all probability measures $Q$ on the domain of $P$ such that $Q$ and $P$ are progressively equivalent and…

Probability · Mathematics 2024-08-02 Spyridon M. Tzaninis , Nikolaos D. Macheras

Poisson random effect models with a shared random effect have been widely used in actuarial science for analyzing the number of claims. In particular, the random effect is a key factor in a posteriori risk classification. However, the…

Statistics Theory · Mathematics 2018-11-13 Woojoo Lee , Jeonghwan Kim , Jae Youn Ahn

In this paper, we adapt the classic Cram\'er-Lundberg collective risk theory model to a perturbed model by adding a Wiener process to the compound Poisson process, which can be used to incorporate premium income uncertainty, interest rate…

Risk Management · Quantitative Finance 2021-07-07 Yacine Koucha , Alfredo D. Egidio dos Reis

Multivariate Poisson processes have many important applications in Insurance, Finance, and many other areas of Applied Probability. In this paper we study the backward simulation approach to modelling multivariate Poisson processes and…

Methodology · Statistics 2017-10-30 Michael Chiu , Kenneth R. Jackson , Alexander Kreinin

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

Consider two insurance companies (or two branches of the same company) that receive premiums at different rates and then split the amount they pay in fixed proportions for each claim (for simplicity we assume that they are equal). We model…

General Finance · Quantitative Finance 2011-02-14 Irmina Czarna , Zbigniew Palmowski

We consider a risk model with a counting process whose intensity is a Markovian shot-noise process, to resolve one of the disadvantages of the Cram\'er-Lundberg model, namely the constant jump intensity of the Poisson process. Due to this…

Probability · Mathematics 2022-05-11 Simon Pojer , Stefan Thonhauser

The claim arrival process to an insurance company is modeled by a compound Poisson process whose intensity and/or jump size distribution changes at an unobservable time with a known distribution. It is in the insurance company's interest to…

Optimization and Control · Mathematics 2008-12-10 Erhan Bayraktar , H. Vincent Poor

The claim experience of the past is a very important information to calculate the fair price of an insurance contract. In a lot of European countries for instance the prices for motor car insurance depend on the number of claims the driver…

Risk Management · Quantitative Finance 2010-09-22 Magda Schiegl

We introduce a class of continuous-time bivariate phase-type distributions for modeling dependencies from common shocks. The construction uses continuous-time Markov processes that evolve identically until an internal common-shock event,…

Statistics Theory · Mathematics 2025-12-01 Martin Bladt , Oscar Peralta , Jorge Yslas

In this paper, we develop a method to model and estimate several, _dependent_ count processes, using granular data. Specifically, we develop a multivariate Cox process with shot noise intensities to jointly model the arrival process of…

Risk Management · Quantitative Finance 2021-08-19 Benjamin Avanzi , Gregory Clive Taylor , Bernard Wong , Xinda Yang

The Poisson process is one of the simplest stochastic processes defined in continuous time, having interesting mathematical properties, leading, in many situations, to applications mathematically treatable. One of the limitations of the…

Probability · Mathematics 2022-05-26 Thomas Freud , Pablo M. Rodriguez

This paper is concerned with modelling multiple claim arrays that are subject to one or more common shocks. It uses a structure that involves very general forms both idiosyncratic and common shock components of cell means. The dependencies…

Applications · Statistics 2022-10-26 Greg Taylor

A method is developed to estimate the parameters of a Levy copula of a discretely observed bivariate compound Poisson process without knowledge of common shocks. The method is tested in a small sample simulation study. Also, the method is…

Risk Management · Quantitative Finance 2012-12-04 J. L. van Velsen