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This paper addresses the identification of insurance models with multidimensional screening where insurees have private information about their risk and risk aversion. The model includes a random damage and the possibility of several…

Mathematical Finance · Quantitative Finance 2016-01-18 Gaurab Aryal , Isabelle Perrigne , Quang Vuong

In reinsurance, Poisson and Negative binomial distributions are employed for modeling frequency. However, the incomplete data regarding reported incurred claims above a priority level presents challenges in estimation. This paper focuses on…

Methodology · Statistics 2024-12-16 Nicolas Baradel

Changing time of simple continuous-time Markov counting processes by independent unit-rate Poisson processes results in Markov counting processes for which we provide closed-form transition rates via composition of trajectories and with…

Probability · Mathematics 2014-03-25 Carles Bretó

Introducing common shocks is a popular dependence modelling approach, with some recent applications in loss reserving. The main advantage of this approach is the ability to capture structural dependence coming from known relationships. In…

Risk Management · Quantitative Finance 2021-07-01 Benjamin Avanzi , Gregory Clive Taylor , Phuong Anh Vu , Bernard Wong

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 study a multidimensional renewal risk model, with common counting process and cadlag returns. Considering that the claim vectors have common distribution from some multivariate distribution class with heavy tail, are mutually weakly…

Probability · Mathematics 2024-12-18 Dimitrios G. Konstantinides , Charalampos D. Passalidis

Stochastic modelling of fatigue (and other material's deterioration), as well as of cumulative damage in risk theory, are often based on compound sums of independent random variables, where the number of addends is represented by an…

Probability · Mathematics 2019-12-02 L. Beghin , J. Gajda , A. Maheshwari

Every time drivers take to the road, and with each mile that they drive, exposes themselves and others to the risk of an accident. Insurance premiums are only weakly linked to mileage, however, and have lump-sum characteristics largely. The…

Risk Management · Quantitative Finance 2020-03-11 Safoora Zarei , Ali R. Fallahi

A $M/M/1$ queue with catastrophes is a modified $M/M/1$ queue model for which, according to the times of a Poisson process, catastrophes occur leaving the system empty. In this work, we study a fractional $M/M/1$ queue with catastrophes,…

Probability · Mathematics 2021-07-13 Matheus de Oliveira Souza , Pablo Martin Rodriguez

In this paper we develop a stochastic analysis for marked binomial processes, that can be viewed as the discrete analogues of marked Poisson processes. The starting point is the statement of a chaotic expansion for square-integrable (marked…

Probability · Mathematics 2024-07-16 Hélène Halconruy

For the sum process $X=X^1+X^2$ of a bivariate L\'evy process $(X^1,X^2)$ with possibly dependent components, we derive a quintuple law describing the first upwards passage event of $X$ over a fixed barrier, caused by a jump, by the joint…

Probability · Mathematics 2009-12-11 Irmingard Eder , Claudia Klüppelberg

In this research, two-state Markov switching models are proposed to study accident frequencies and severities. These models assume that there are two unobserved states of roadway safety, and that roadway entities (e.g., roadway segments)…

Applications · Statistics 2008-12-09 Nataliya V. Malyshkina

A common assumption when modeling queuing systems is that arrivals behave like a Poisson process with constant parameter. In practice, however, call arrivals are often observed to be significantly overdispersed. This motivates that in this…

Probability · Mathematics 2017-03-07 Mariska Heemskerk , Julia Kuhn , Michel Mandjes

We propose a class of strongly efficient rare event simulation estimators for random walks and compound Poisson processes with a regularly varying increment/jump-size distribution in a general large deviations regime. Our estimator is based…

Probability · Mathematics 2017-06-14 Bohan Chen , Jose Blanchet , Chang-Han Rhee , Bert Zwart

This paper presents an identity between the multivariate and univariate saddlepoint approximations applied to sample path probabilities for a certain class of stochastic processes. This class, which we term the recursively compounded…

Probability · Mathematics 2024-06-21 Jesse Goodman

In this contribution we study asymptotics of the simultaneous Parisian ruin probability of a two-dimensional fractional Brownian motion risk process. This risk process models the surplus processes of an insurance and a reinsurance…

Probability · Mathematics 2024-01-22 Grigori Jasnovidov , Aleksandr Shemendyuk

We prove large deviation principles for two versions of fractional Poisson processes. Firstly we consider the main version which is a renewal process; we also present large deviation estimates for the ruin probabilities of an insurance…

Probability · Mathematics 2016-11-26 Luisa Beghin , Claudio Macci

The Poisson process of order $i$ is a weighted sum of independent Poisson processes and is used to model the flow of clients in different services. In the paper below we study some extensions of this process, for different forms of the…

Probability · Mathematics 2019-10-01 A. Maheshwari , E. Orsingher , A. S. Sengar

Some risks have extremely high stakes. For example, a worldwide pandemic or asteroid impact could potentially kill more than a billion people. Comfortingly, scientific calculations often put very low probabilities on the occurrence of such…

Physics and Society · Physics 2008-10-31 Toby Ord , Rafaela Hillerbrand , Anders Sandberg

Incurred but not reported (IBNR) loss reserving is an important issue for Property & Casualty (P&C) insurers. The modeling of the claim arrival process, especially its temporal dependence, has not been closely examined in many of the…

Applications · Statistics 2015-12-22 Andrei L. Badescu , X. Sheldon Lin , Dameng Tang