The finite-time ruin probabilities of a dependent bidimensional risk model with subexponential claims and Brownian perturbations

The paper considers a dependent bidimensional risk model with stochastic return and Brownian perturbations in which the price processes of the investment portfolio of the two lines of business are two geometric Lévy processes, and the claim-number processes of the two lines of business follows two...

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Main Authors: Chenghao Xu, Xiaowen Shen, Kaiyong Wang
Format: Article
Language:English
Published: Vilnius University Press 2025-03-01
Series:Nonlinear Analysis
Subjects:
Online Access:https://www.journals.vu.lt/nonlinear-analysis/article/view/39327
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author Chenghao Xu
Xiaowen Shen
Kaiyong Wang
author_facet Chenghao Xu
Xiaowen Shen
Kaiyong Wang
author_sort Chenghao Xu
collection DOAJ
description The paper considers a dependent bidimensional risk model with stochastic return and Brownian perturbations in which the price processes of the investment portfolio of the two lines of business are two geometric Lévy processes, and the claim-number processes of the two lines of business follows two different stochastic processes, which can be dependent. When the two components of each pair of claims from the two lines of business are strongly asymptotically independent and have subexponential distributions, the asymptotics of the finite-time ruin probability are obtained. Numerical studies are carried out to check the accuracy of the asymptotics of the finite-time ruin probability for the claims having regularly varying tail distributions.
format Article
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institution OA Journals
issn 1392-5113
2335-8963
language English
publishDate 2025-03-01
publisher Vilnius University Press
record_format Article
series Nonlinear Analysis
spelling doaj-art-76d039e9c54f4d1b9bd04a8f611c7e6c2025-08-20T02:07:35ZengVilnius University PressNonlinear Analysis1392-51132335-89632025-03-013010.15388/namc.2025.30.39327The finite-time ruin probabilities of a dependent bidimensional risk model with subexponential claims and Brownian perturbationsChenghao Xu0Xiaowen Shen1Kaiyong Wang2University of Electronic Science and Technology of ChinaSuzhou University of Science and TechnologySuzhou University of Science and Technology The paper considers a dependent bidimensional risk model with stochastic return and Brownian perturbations in which the price processes of the investment portfolio of the two lines of business are two geometric Lévy processes, and the claim-number processes of the two lines of business follows two different stochastic processes, which can be dependent. When the two components of each pair of claims from the two lines of business are strongly asymptotically independent and have subexponential distributions, the asymptotics of the finite-time ruin probability are obtained. Numerical studies are carried out to check the accuracy of the asymptotics of the finite-time ruin probability for the claims having regularly varying tail distributions. https://www.journals.vu.lt/nonlinear-analysis/article/view/39327subexponential distributionfinite-time ruin probabilitystochastic returnLévy process
spellingShingle Chenghao Xu
Xiaowen Shen
Kaiyong Wang
The finite-time ruin probabilities of a dependent bidimensional risk model with subexponential claims and Brownian perturbations
Nonlinear Analysis
subexponential distribution
finite-time ruin probability
stochastic return
Lévy process
title The finite-time ruin probabilities of a dependent bidimensional risk model with subexponential claims and Brownian perturbations
title_full The finite-time ruin probabilities of a dependent bidimensional risk model with subexponential claims and Brownian perturbations
title_fullStr The finite-time ruin probabilities of a dependent bidimensional risk model with subexponential claims and Brownian perturbations
title_full_unstemmed The finite-time ruin probabilities of a dependent bidimensional risk model with subexponential claims and Brownian perturbations
title_short The finite-time ruin probabilities of a dependent bidimensional risk model with subexponential claims and Brownian perturbations
title_sort finite time ruin probabilities of a dependent bidimensional risk model with subexponential claims and brownian perturbations
topic subexponential distribution
finite-time ruin probability
stochastic return
Lévy process
url https://www.journals.vu.lt/nonlinear-analysis/article/view/39327
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