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We investigate the asymptotic of ruin probabilities when the company invests its reserve in a risky asset with a switching regime price. We assume that the asset price is a conditional geometric Brownian motion with parameters modulated by…

Probability · Mathematics 2021-10-19 Yuri Kabanov , Serguei Pergamenshchikov

In this article we survey properties of mixed Poisson distributions and probabilistic aspects of the Stirling transform: given a non-negative random variable $X$ with moment sequence $(\mu_s)_{s\in\mathbb{N}}$ we determine a discrete random…

Combinatorics · Mathematics 2014-09-12 Markus Kuba , Alois Panholzer

Compound Poisson distributions and signed compound Poisson measures are used for approximation of the Markov binomial distribution. The upper and lower bound estimates are obtained for the total variation, local and Wasserstein norms. In a…

Statistics Theory · Mathematics 2010-11-29 V. Čekanavičius , P. Vellaisamy

We investigate the Levy insurance risk model with tax under Cram\'er's condition. A direct analogue of Cram\'er's estimate for the probability of ruin in this model is obtained, together with the asymptotic distribution, conditional on ruin…

Probability · Mathematics 2018-06-19 Philip Griffin

The Cram\'er-Lundberg model with exponential claims and proportional investment is solved exactly: the integro-differential equation for the survival probability reduces to a doubly confluent Heun equation, yielding an explicit solution in…

Probability · Mathematics 2026-04-13 Platon Promyslov , Maxim Romanov , Goluba Yurieva

The aim of this paper is to present a mixture composite regression model for claim severity modelling. Claim severity modelling poses several challenges such as multimodality, heavy-tailedness and systematic effects in data. We tackle this…

Methodology · Statistics 2021-08-02 Tsz Chai Fung , George Tzougas , Mario Wuthrich

We analyze systems of agents sharing light-tailed risky claims issued by different financial objects. Assuming exponentially distributed claims, we obtain that both agents' and system's losses follow generalized exponential mixture…

Risk Management · Quantitative Finance 2016-12-22 Claudia Klüppelberg , Miriam Isabel Seifert

In this paper, we discuss the Cram\'er-Lundberg model with investments, where the price of the invested risk asset follows a geometric Brownian motion with drift $a$ and volatility $\sigma> 0.$ By assuming there is a cap on the claim sizes,…

Probability · Mathematics 2010-03-02 Shimao Fan , Sheng Xiong , Wei-Shih Yang

A workload model using the infinite source Poisson model for bursts is combined with the on--off model for within burst activity. Burst durations and on--off durations are assumed to have heavy-tailed distributions with infinite variance…

Statistics Theory · Mathematics 2011-06-06 David A. Rolls

In this paper, an alternative mixed Poisson distribution is proposed by amalgamating Poisson distribution and a modification of the Quasi Lindley distribution. Some fundamental structural properties of the new distribution, namely the shape…

Methodology · Statistics 2021-10-26 Ramajeyam Tharshan , Pushpakanthie Wijekoon

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

We investigate the asymptotic of ruin probabilities when the company combines the life- and non-life insurance businesses and invests its reserve into a risky asset with stochastic volatility and drift driven by a two-state Markov process.…

Probability · Mathematics 2020-12-10 Anastasiya Ellanskaya , Yuri Kabanov

Mixture models have received considerable attention recently and Newton [Sankhy\={a} Ser. A 64 (2002) 306--322] proposed a fast recursive algorithm for estimating a mixing distribution. We prove almost sure consistency of this recursive…

Statistics Theory · Mathematics 2009-08-25 Surya T. Tokdar , Ryan Martin , Jayanta K. Ghosh

Considerable literature has been devoted to developing statistical inferential results for risk measures, especially for those that are of the form of L-functionals. However, practical and theoretical considerations have highlighted quite a…

Statistics Theory · Mathematics 2011-05-31 Abdelhakim Necir , Ričardas Zitikis

We consider a spectrally-negative Markov additive process as a model of a risk process in random environment. Following recent interest in alternative ruin concepts, we assume that ruin occurs when an independent Poissonian observer sees…

Probability · Mathematics 2013-10-14 Hansjoerg Albrecher , Jevgenijs Ivanovs

Consider two insurance companies (or two branches of the same company) that receive premiums at different rates and then split the amount they pay in fixed proportions for each claim (for simplicity we assume that they are equal). We model…

General Finance · Quantitative Finance 2011-02-14 Irmina Czarna , Zbigniew Palmowski

In this paper we study the joint ruin problem for two insurance companies that divide between them both claims and premia in some specified proportions (modeling two branches of the same insurance company or an insurance and re-insurance…

Probability · Mathematics 2007-11-16 Florin Avram , Zbigniew Palmowski , Martijn Pistorius

The ruin probability in the classical Brownian risk model can be explicitly calculated for both finite and infinite-time horizon. This is not the case for the simultaneous ruin probability in two-dimensional Brownian risk model. Resorting…

Probability · Mathematics 2018-11-13 Krzysztof Dȩbicki , Enkelejd Hashorva , Zbigniew Michna

A high order expansion of the renewal function is provided under the assumption that the inter-renewal time distribution is light tailed with finite moment generating function g on a neighborhood of 0. This expansion relies on complex…

Probability · Mathematics 2016-11-29 Clément Dombry , Landy Rabehasaina

We start by showing that the finite-time absolute ruin probability in the classical risk model with constant interest force can be expressed in terms of the transition probability of a positive Ornstein-Uhlenbeck type process, say X. Our…

Computational Finance · Quantitative Finance 2010-06-15 Ronnie L. Loeffen , Pierre Patie
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