On the Expected Present Value of Total Dividends in a Risk Model with Potentially Delayed Claims

On the Expected Present Value of Total Dividends in a Risk Model with Potentially Delayed Claims

Year:    2013

Author:    Jiehua Xie, Wei Zou

Communications in Mathematical Research , Vol. 29 (2013), Iss. 3 : pp. 193–202

Abstract

In this paper, we consider a risk model in which two types of individual claims, main claims and by-claims, are defined. Every by-claim is induced by the main claim randomly and may be delayed for one time period with a certain probability. The dividend policy that certain amount of dividends will be paid as long as the surplus is greater than a constant dividend barrier is also introduced into this delayed claims risk model. By means of the probability generating functions, formulae for the expected present value of total dividend payments prior to ruin are obtained for discrete-type individual claims. Explicit expressions for the corresponding results are derived for $K_n$ claim amount distributions. Numerical illustrations are also given.

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Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/2013-CMR-19003

Communications in Mathematical Research , Vol. 29 (2013), Iss. 3 : pp. 193–202

Published online:    2013-01

AMS Subject Headings:    Global Science Press

Copyright:    COPYRIGHT: © Global Science Press

Pages:    10

Keywords:    compound binomial model delayed claim dividend expected present value.

Author Details

Jiehua Xie

Wei Zou