Ruin Probability in a Generalised Risk Process under Rates of Interest with Homogenous Markov Chains

Ruin Probability in a Generalised Risk Process under Rates of Interest with Homogenous Markov Chains

Year:    2014

East Asian Journal on Applied Mathematics, Vol. 4 (2014), Iss. 3 : pp. 283–300

Abstract

This article explores recursive and integral equations for ruin probabilities of generalised risk processes, under rates of interest with homogenous Markov chain claims and homogenous Markov chain premiums. We assume that claim and premium take a countable number of non-negative values. Generalised Lundberg inequalities for the ruin probabilities of these processes are derived via a recursive technique. Recursive equations for finite time ruin probabilities and an integral equation for the ultimate ruin probability are presented, from which corresponding probability inequalities and upper bounds are obtained. An illustrative numerical example is discussed.

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Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/10.4208/eajam.051013.230614a

East Asian Journal on Applied Mathematics, Vol. 4 (2014), Iss. 3 : pp. 283–300

Published online:    2014-01

AMS Subject Headings:   

Copyright:    COPYRIGHT: © Global Science Press

Pages:    18

Keywords:    Integral equation recursive equation ruin probability homogeneous Markov chain.