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The equity risk premium puzzle is that the return on equities has far exceeded the average return on short-term risk-free debt and cannot be explained by conventional representative-agent consumption based equilibrium models. We review a…

综合金融 · 定量金融 2019-09-18 Ravi Kashyap

Systemic risk is receiving increasing attention in the insurance industry. In this paper, we propose a multi-dimensional L\'{e}vy process-based renewal risk model with heterogeneous insurance claims, where every dimension indicates a…

风险管理 · 定量金融 2025-12-17 Bingzhen Geng , Yang Liu , Hongfu Wan

Based on the concept of self-decomposability, we extend some recent multivariate L\'evy models built using multivariate subordination with the aim of capturing situations in which a sudden event in one market is propagated onto related…

证券定价 · 定量金融 2020-07-31 Matteo Gardini , Piergiacomo Sabino , Emanuela Sasso

We consider the optimal dividend problem for the insurance risk process in a general Levy process setting. The objective is to find a strategy which maximizes the expected total discounted dividends until the time of ruin. We give…

概率论 · 数学 2011-01-04 Kam Chuen Yuen , Chuancun Yin

Risk aversion and insurance are two prominent and interconnected concepts in economics and finance. To explore their fundamental connection, we introduce risk-insurance parity, which associates various classes of insurance contracts with…

理论经济学 · 经济学 2025-12-11 Benjamin Côté , Ruodu Wang , Qinyu Wu

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…

概率论 · 数学 2020-12-07 Guusje Delsing , Michel Mandjes

We study a combination of the refracted and reflected L\'evy processes. Given a spectrally negative L\'evy process and two boundaries, it is reflected at the lower boundary while, whenever it is above the upper boundary, a linear drift at a…

概率论 · 数学 2017-06-13 José-Luis Pérez , Kazutoshi Yamazaki

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…

风险管理 · 定量金融 2021-12-14 Helena Jasiulewicz , Wojciech Kordecki

We study risk processes with level dependent premium rate. Assuming that the premium rate converges, as the risk reserve increases, to the critical value in the net-profit condition, we obtain upper and lower bounds for the ruin…

概率论 · 数学 2023-11-07 Denis Denisov , Niklas Gotthardt , Dmitry Korshunov , Vitali Wachtel

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…

概率论 · 数学 2018-06-19 Philip Griffin

In ruin theory, the net profit condition intuitively means that the incurred random claims on average do not occur more often than premiums are gained. The breach of the net profit condition causes guaranteed ruin in few but simple cases…

概率论 · 数学 2024-01-08 Andrius Grigutis , Arvydas Karbonskis , Jonas Šiaulys

We study the problem of minimizing the discounted probability of exponential Parisian ruin, that is, the discounted probability that an insurer's surplus exhibits an excursion below zero in excess of an exponentially distributed clock. The…

最优化与控制 · 数学 2020-07-07 Xiaoqing Liang , Virginia R. Young

In this paper, we adapt the classic Cram\'er-Lundberg collective risk theory model to a perturbed model by adding a Wiener process to the compound Poisson process, which can be used to incorporate premium income uncertainty, interest rate…

风险管理 · 定量金融 2021-07-07 Yacine Koucha , Alfredo D. Egidio dos Reis

We investigate, focusing on the ruin probability, an adaptation of the Cramer-Lundberg model for the surplus process of an insurance company, in which, conditionally on their intensities, the two mixed Poisson processes governing the…

数理金融 · 定量金融 2017-06-27 Matija Vidmar

For a given L\'{e}vy process $X=(X_t)_{t\in\mathbb{R}_+}$ and for fixed $s\in \mathbb{R}_{+}\cup\{\infty\}$ and $t\in\mathbb{R}_+$ we analyse the {\it future drawdown extremes} that are defined as follows: \begin{eqnarray*} \overline…

概率论 · 数学 2017-05-08 E. J. Baurdoux , Z. Palmowski , M. R. Pistorius

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…

概率论 · 数学 2024-10-11 Yang Chen , Zhaolei Cui , Yuebao Wang

In this paper, we consider the mixed ratcheting-periodic dividend strategies for spectrally negative L\'{e}vy risk model, in which dividend payments can both be made continuously without falling and discretely at the jump times of an…

概率论 · 数学 2021-12-03 Fuyun Sun , Zhanjie Song

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…

统计理论 · 数学 2015-07-29 Jinzhu Li , Qihe Tang

This paper studies risk balancing features in an insurance market by evaluating ruin probabilities for single and multiple components of a multivariate compound Poisson risk process. The dependence of the components of the process is…

概率论 · 数学 2020-02-04 Anita Behme , Claudia Klüppelberg , Gesine Reinert

We find the optimal indemnity to minimize the probability of ruin when premium is calculated according to the distortion premium principle with a proportional risk load, and admissible indemnities are such that both the indemnity and…

风险管理 · 定量金融 2020-12-08 Bahman Angoshtari , Virginia R. Young