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Consider an insurance company exposed to a stochastic economic environment that contains two kinds of risk. The first kind is the insurance risk caused by traditional insurance claims, and the second kind is the financial risk resulting…

Statistics Theory · Mathematics 2015-07-29 Jinzhu Li , Qihe Tang

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

In this paper we study limit behavior for a Markov-modulated (MM) binomial counting process, also called a binomial counting process under regime switching. Such a process naturally appears in the context of credit risk when multiple…

Probability · Mathematics 2020-03-25 Peter Spreij , Jaap Storm

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

We study the probability of ruin before time $t$ for the family of tempered stable L\'evy insurance risk processes, which includes the spectrally positive inverse Gaussian processes. Numerical approximations of the ruin time distribution…

Probability · Mathematics 2013-03-08 Philip S. Griffin , Ross A. Maller , Dale Roberts

We study modified ruin probabilities in a Cram\'er-Lundberg model driven by a compound mixed Poisson process. In the heavy-tailed regime, if the integrated claim-size distribution is subexponential and the upper endpoint of the mixing…

Probability · Mathematics 2026-05-11 Noriyoshi Sakuma , Momoka Tashiro

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

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

We present and explore a general method for deriving a Lie-Markov model from a finite semigroup. If the degree of the semigroup is $k$, the resulting model is a continuous-time Markov chain on $k$ states and, as a consequence of the product…

Group Theory · Mathematics 2017-09-05 Jeremy G. Sumner , Michael D. Woodhams

In this work, we derive a complete characterization of all ruin-inducing probability measures that preserve the structure of a given compound renewal process in terms of suitable pairs of functions $(\gamma,\delta)$. This result allows us…

Probability · Mathematics 2026-04-28 Spyridon M. Tzaninis , Apostolos Bozikas

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

The paper contains a basic course on classical Risk Theory for a compound Poisson process. It is based on probabilistic proofs using the method of the "Ballot Theorem" introduced by Tackas. This provides elegant and direct proofs. Also…

Probability · Mathematics 2011-10-13 Anders Martin-Löf , Anders Sköllermo

Consider a multi-dimensional Brownian motion which models the surplus processes of multiple lines of business of an insurance company. Our main result gives exact asymptotics for the cumulative Parisian ruin probability as the initial…

Probability · Mathematics 2020-04-28 Lanpeng Ji

Using the results of precise large deviation and renewal theory for widely dependent random variables, this paper obtains the asymptotic estimation of the random-time ruin probability and the uniform asymptotic estimation of finite-time…

Probability · Mathematics 2025-06-24 Yang Chen , Zhaolei Cui , Yuebao Wang

In this paper a quantitative analysis of the ruin probability in finite time of discrete risk process with proportional reinsurance and investment of finance surplus is focused on. It is assumed that the total loss on a unit interval has a…

Risk Management · Quantitative Finance 2021-12-14 Helena Jasiulewicz , Wojciech Kordecki

We study a new technique for the asymptotic analysis of heavy-tailed systems conditioned on large deviations events. We illustrate our approach in the context of ruin events of multidimensional regularly varying random walks. Our approach…

Statistics Theory · Mathematics 2014-03-10 Jose Blanchet , Jingchen Liu

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

A sequence of real numbers (x_n) is Benford if the significands, i.e. the fraction parts in the floating-point representation of (x_n) are distributed logarithmically. Similarly, a discrete-time irreducible and aperiodic finite-state Markov…

Probability · Mathematics 2010-03-05 Bahar Kaynar , Arno Berger , Theodore P. Hill , Ad Ridder

In this paper, we consider a classical risk model refracted at given level. We give an explicit expression for the joint density of the ruin time and the cumulative number of claims counted up to ruin time. The proof is based on solving…

Probability · Mathematics 2017-11-28 Yanhong Li , Zbigniew Palmowski , Chunming Zhao , Chunsheng Zhang

We study the rough asymptotic behaviour of a general economic risk model in a discrete setting. Both financial and insurance risks are taken into account. Loss during the first $n$ years is modelled as a random variable…

Probability · Mathematics 2015-11-25 Jaakko Lehtomaa