English
Related papers

Related papers: Probabilistic approach to risk processes with leve…

200 papers

This paper investigates ruin probabilities for a two-dimensional fractional Brownian risk model with a proportional reinsurance scheme. We focus on joint and simultaneous ruin probabilities in a finite-time horizon. The risk processes of…

Probability · Mathematics 2020-10-02 Krzysztof Kȩpczyński

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

In this paper we study the asymptotic decay of finite time ruin probabilities for an insurance company that faces heavy-tailed claims, uses predictable investment strategies and makes investments in risky assets whose prices evolve…

Risk Management · Quantitative Finance 2008-12-02 Henrik Hult , Filip Lindskog

This paper concerns an optimal dividend distribution problem for an insurance company with surplus-dependent premium. In the absence of dividend payments, such a risk process is a particular case of so-called piecewise deterministic Markov…

Portfolio Management · Quantitative Finance 2016-04-26 Ewa Marciniak , Zbigniew Palmowski

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

We formulate the insurance risk process in a general Levy process setting, and give general theorems for the ruin probability and the asymptotic distribution of the overshoot of the process above a high level, when the process drifts to…

Probability · Mathematics 2007-05-23 Claudia Kluppelberg , Andreas E. Kyprianou , Ross A. Maller

We study the asymptotic behavior of ruin probabilities, as the initial reserve goes to infinity, for a reserve process model where claims arrive according to a renewal process, while between the claim times the process has the dynamics of…

Probability · Mathematics 2023-02-24 Ying He , Konstantin Borovkov

This paper concerns an insurance firm's surplus process observed at renewal inspection times, with a focus on assessing the probability of the surplus level dropping below zero. For various types of inter-inspection time distributions, an…

Probability · Mathematics 2026-01-14 Florine Kuipers , Michel Mandjes , Sara Morcy

In this paper, we consider an optimal reinsurance problem to minimize the probability of drawdown for the scaled Cram\'er-Lundberg risk model when the reinsurance premium is computed according to the mean-variance premium principle. We…

Optimization and Control · Mathematics 2022-01-04 Pablo Azcue , Xiaoqing Liang , Nora Muler , Virginia R. Young

We develop sharp large deviation asymptotics for the probability of ruin in a Markov-dependent stochastic economic environment and study the extremes for some related Markovian processes which arise in financial and insurance mathematics,…

Probability · Mathematics 2009-09-01 Jeffrey F. Collamore

This paper investigates a dividend optimization problem with a positive creeping-associated terminal value at ruin for spectrally negative Levy processes. We consider an insurance company whose surplus process evolves according to a…

Probability · Mathematics 2023-01-10 Chongrui Zhu

We study a dynamic model of a non-life insurance portfolio. The foundation of the model is a compound Poisson process that represents the claims side of the insurer. To introduce clusters of claims appearing, e.g. with catastrophic events,…

Risk Management · Quantitative Finance 2026-03-03 Jonathan Klinge , Maren Diane Schmeck

In this paper we analyze so-called Parisian ruin probability that happens when surplus process stays below zero longer than fixed amount of time $\zeta>0$. We focus on general spectrally negative L\'{e}vy insurance risk process. For this…

Probability · Mathematics 2010-04-21 Irmina Czarna , Zbigniew Palmowski

This paper presents a novel model for bivariate stochastic fluid processes that incorporate a ruin-dependent behavioral switch. Unlike typical models that assume a shared underlying process, our model allows each process to operate…

Probability · Mathematics 2023-08-01 Hamed Amini , Andreea Minca , Oscar Peralta

For two nonstandard renewal risk models, we investigate the precise large deviations of the finite-time ruin probability and a random sum of the net-loss process, and the asymptotics of the random-time ruin probability. Notably, in one of…

Probability · Mathematics 2024-10-11 Yang Chen , Zhaolei Cui , Yuebao Wang

We consider a two-dimensional ruin problem where the surplus process of business lines is modelled by a two-dimensional correlated Brownian motion with drift. We study the ruin function $P(u)$ for the component-wise ruin (that is both…

Probability · Mathematics 2019-08-07 Krzysztof Debicki , Lanpeng Ji , Tomasz Rolski

This paper considers a variant of the classical Cram\'er-Lundberg model that is particularly appropriate in the credit context, with the distinguishing feature that it corresponds to a finite number of obligors. The focus is on computing…

Probability · Mathematics 2020-12-07 Guusje Delsing , Michel Mandjes

We propose a Markov chain model for credit rating changes. We do not use any distributional assumptions on the asset values of the rated companies but directly model the rating transitions process. The parameters of the model are estimated…

Risk Management · Quantitative Finance 2014-01-21 David Wozabal , Ronald Hochreiter

The paper provides an overview of the theory and applications of risk-sensitive Markov decision processes. The term 'risk-sensitive' refers here to the use of the Optimized Certainty Equivalent as a means to measure expectation and risk.…

Risk Management · Quantitative Finance 2025-09-23 Nicole Bäuerle , Anna Jaśkiewicz

We consider a classical risk process with arrival of claims following a non-stationary Hawkes process. We study the asymptotic regime when the premium rate and the baseline intensity of the claims arrival process are large, and claim size…

Risk Management · Quantitative Finance 2019-08-22 Zailei Cheng , Youngsoo Seol