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The paper investigates a discrete time Binomial risk model with different types of polices and shock events may influence some of the claim sizes. It is shown that this model can be considered as a particular case of the classical compound…

Probability · Mathematics 2022-10-12 Pavlina K. Jordanova , Evelina Veleva

We consider a risk model where deficits after ruin are covered by a new type of reinsurance contract that provides capital injections. To allow the insurance company's survival after ruin, the reinsurer injects capital only at ruin times…

Risk Management · Quantitative Finance 2018-06-13 Zied Ben Salah , José Garrido

We consider the problem of predicting perturbation effects via causal models. In many applications, it is a priori unknown which mechanisms of a system are modified by an external perturbation, even though the features of the perturbation…

Machine Learning · Computer Science 2025-07-02 Nora Schneider , Lars Lorch , Niki Kilbertus , Bernhard Schölkopf , Andreas Krause

Survival models are a popular tool for the analysis of time to event data with applications in medicine, engineering, economics, and many more. Advances like the Cox proportional hazard model have enabled researchers to better describe…

Machine Learning · Statistics 2021-02-16 Stefan Groha , Sebastian M Schmon , Alexander Gusev

We propose a new definition of a multivariate subexponential distribution. We compare this definition with the two existing notions of multivariate subexponentiality, and compute the asymptotic behaviour of the ruin probability in the…

Probability · Mathematics 2015-09-18 Gennady Samorodnitsky , Julian Sun

Multiple imputation is a straightforward method for handling missing data in a principled fashion. This paper presents an overview of multiple imputation, including important theoretical results and their practical implications for…

Methodology · Statistics 2018-01-15 Jared S. Murray

This paper shows that the degree of approximate multicollinearity in a linear regression model increases simply by including independent variables, even if these are not highly linearly related. In the current situation where it is…

Methodology · Statistics 2025-03-07 Román Salmerón Gómez , Catalina García García

It is of high interest for a company to identify customers expected to bring the largest profit in the upcoming period. Knowing as much as possible about each customer is crucial for such predictions. However, their demographic data,…

Machine Learning · Computer Science 2018-03-30 Jelena Stojanovic , Djordje Gligorijevic , Zoran Obradovic

We study market-consistent valuation of liability cash flows motivated by current regulatory frameworks for the insurance industry. Building on the theory on multiple-prior optimal stopping we propose a valuation functional with sound…

Pricing of Securities · Quantitative Finance 2021-09-02 Hampus Engsner , Filip Lindskog , Julie Thoegersen

Model multiplicity, the phenomenon where multiple models achieve similar performance despite different underlying learned functions, introduces arbitrariness in model selection. While this arbitrariness may seem inconsequential in…

Computers and Society · Computer Science 2024-09-16 Prakhar Ganesh , Ihsan Ibrahim Daldaban , Ignacio Cofone , Golnoosh Farnadi

In the property and casualty (P&C) insurance industry, reserves comprise most of a company's liabilities. These reserves are the best estimates made by actuaries for future unpaid claims. Notably, reserves for different lines of business…

Applications · Statistics 2025-04-14 Pengfei Cai , Anas Abdallah , Pratheepa Jeganathan

Shift of the power system generation from the fossil to the variable renewable sources prompted the system operators to search for new sources of flexibility, that is, new reserve providers. With the introduction of electric vehicles, smart…

Systems and Control · Electrical Eng. & Systems 2020-12-22 Ivan Pavić , Hrvoje Pandžić , Tomislav Capuder

The distribution of health care payments to insurance plans has substantial consequences for social policy. Risk adjustment formulas predict spending in health insurance markets in order to provide fair benefits and health care coverage for…

Applications · Statistics 2021-02-25 Anna Zink , Sherri Rose

This paper considers the Cram\'er-Lundberg model, with the additional feature that the number of clients can fluctuate over time. Clients arrive according to a Poisson process, where the times they spend in the system form a sequence of…

Probability · Mathematics 2023-05-25 Peter Braunsteins , Michel Mandjes

Changes in collateralization have been implicated in significant default (or near-default) events during the financial crisis, most notably with AIG. We have developed a framework for quantifying this effect based on moving between…

Risk Management · Quantitative Finance 2013-02-20 Chris Kenyon , Andrew Green

The paper is concerned with common shock models of claim triangles. These are usually constructed as a linear combinations of shock components and idiosyncratic components. Previous literature has discussed the unbalanced property of such…

Methodology · Statistics 2021-12-30 Greg Taylor , Phuong Anh Vu

Survival models capture the relationship between an accumulating hazard and the occurrence of a singular event stimulated by that accumulation. When the model for the hazard is sufficiently flexible survival models can accommodate a wide…

Methodology · Statistics 2024-03-04 Michael Betancourt

This paper presents a numerical model to solve the problem of cash accumulation strategies for products with an unknown future price, like assets. Stock prices are modeled by a discretized Wiener Process, and by the means of ordinary…

Mathematical Finance · Quantitative Finance 2017-11-07 Renko Siebols

Activation steering methods were shown to be effective in conditioning language model generation by additively intervening over models' intermediate representations. However, the evaluation of these techniques has so far been limited to…

Computation and Language · Computer Science 2024-12-02 Daniel Scalena , Gabriele Sarti , Malvina Nissim

Generalized linear models (GLMs) using a regression procedure to fit relationships between predictor and target variables are widely used in automobile insurance data. Here, in the process of ratemaking and in order to compute the premiums…

Applications · Statistics 2016-06-02 J. M. Pérez-Sánchez , E. Gómez-Déniz