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Related papers: Optimal insurance with mean-deviation measures

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In this paper we study optimal stopping problems with respect to distorted expectations of the form \begin{eqnarray*} \mathcal{E}(X)=\int_{-\infty}^{\infty} x\,dG(F_X(x)), \end{eqnarray*} where $F_X$ is the distribution function of $X$ and…

Optimization and Control · Mathematics 2015-06-16 Denis Belomestny , Volker Kraetschmer

We address the problem of sharing risk among agents with preferences modelled by a general class of comonotonic additive and law-based functionals that need not be either monotone or convex. Such functionals are called distortion…

Risk Management · Quantitative Finance 2025-09-12 Jean-Gabriel Lauzier , Liyuan Lin , Ruodu Wang

In this paper the utility optimization problem for a general insurance model is studied. The reserve process of the insurance company is described by a stochastic differential equation driven by a Brownian motion and a Poisson random…

Probability · Mathematics 2009-09-01 Yuping Liu , Jin Ma

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

The question of pricing and hedging a given contingent claim has a unique solution in a complete market framework. When some incompleteness is introduced, the problem becomes however more difficult. Several approaches have been adopted in…

Probability · Mathematics 2007-08-08 Pauline Barrieu , Nicole El Karoui

In this paper we investigate the hedging problem of a unit-linked life insurance contract via the local risk-minimization approach, when the insurer has a restricted information on the market. In particular, we consider an endowment…

Mathematical Finance · Quantitative Finance 2017-09-26 Claudia Ceci , Katia Colaneri , Alessandra Cretarola

This paper studies an optimal investment-reinsurance problem for an insurer (she) under the Cram\'er--Lundberg model with monotone mean--variance (MMV) criterion. At any time, the insurer can purchase reinsurance (or acquire new business)…

Portfolio Management · Quantitative Finance 2024-05-30 Xiaomin Shi , Zuo Quan Xu

This paper studies an optimal reinsurance problem for a utility-maximizing insurer, subject to the reinsurer's endogenous default and background risk. An endogenous default occurs when the insurer's contractual indemnity exceeds the…

Risk Management · Quantitative Finance 2026-02-25 Zongxia Liang , Zhaojie Ren , Bin Zou

In this paper, we study an optimal excess-of-loss reinsurance and investment problem for an insurer in defaultable market. The insurer can buy reinsurance and invest in the following securities: a bank account, a risky asset with stochastic…

Portfolio Management · Quantitative Finance 2017-04-27 Nian Yao , Zhiming Yang

Payments in parametric insurance solutions are linked to an index and thus decoupled from policyholders' true losses. While this principle has appealing operational benefits compared to traditional indemnity coverage, i.e. is very efficient…

Applications · Statistics 2026-03-02 Markus Johannes Maier , Matthias Scherer

In this paper, we study a stochastic optimal control problem with stochastic volatility. We prove the sufficient and necessary maximum principle for the proposed problem. Then we apply the results to solve an investment, consumption and…

Portfolio Management · Quantitative Finance 2018-08-15 Rodwell Kufakunesu , Calisto Guambe

This paper considers optimal control problem of a large insurance company under a fixed insolvency probability. The company controls proportional reinsurance rate, dividend pay-outs and investing process to maximize the expected present…

Risk Management · Quantitative Finance 2010-06-01 Zongxia Liang , Jianping Huang

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

Distortion (Denneberg 1990) is a well known premium calculation principle for insurance contracts. In this paper, we study sensitivity properties of distortion functionals w.r.t. the assumptions for risk aversion as well as robustness…

Risk Management · Quantitative Finance 2018-09-19 Daniela Escobar , Georg Pflug

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

The aim of this paper is to introduce an insurance model allowing reinsurance and dividend payment. Our model deals with several homogeneous contracts and takes into account the legislation regarding the provisions to be justified by the…

Pricing of Securities · Quantitative Finance 2008-12-10 D. Goreac

This paper investigates risk measures derived from the expected maximum deficit in a continuous-time framework and develops optimal reserve allocation strategies across multiple lines of business. We formalize the expected maximum deficit…

Risk Management · Quantitative Finance 2026-05-19 Claude Lefevre , Pierre Zuyderhoff

This paper studies the stochastic modeling of market drawdown events and the fair valuation of insurance contracts based on drawdowns. We model the asset drawdown process as the current relative distance from the historical maximum of the…

Pricing of Securities · Quantitative Finance 2016-03-11 Hongzhong Zhang , Tim Leung , Olympia Hadjiliadis

This paper proposes a statistically optimal approach for learning a function value using a confidence interval in a wide range of models, including general non-parametric estimation of an expected loss described as a stochastic programming…

Machine Learning · Statistics 2025-08-07 Arnab Ganguly , Tobias Sutter

The present paper addresses the issue of the stochastic control of the optimal dynamic reinsurance policy and dynamic dividend strategy, which are state-dependent, for an insurance company that operates under multiple insurance lines of…

Optimization and Control · Mathematics 2020-02-11 Khaled Masoumifard , Mohammad Zokaei