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Journals / Sigma Mühendislik ve Fen Bilimleri Dergisi / 2018 / Cilt: 36 - Sayı: 2

THE FORCE OF RUIN

Şule ŞAHİN
Başak BULUT KARAGEYİK
Pages
563–575
Publication Date
2018-06-01
DOI
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

We also obtain FoR under the excess of loss reinsurance arrangement and examine the effect of reinsurance on the FoR.

📌 3 Key Takeaways

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Objective & Hypothesis:This paper introduces a hazard rate function for the time of ruin to calculate the conditional probability of ruin for very small time intervals.
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Key Findings & Data:We call this function as the force of ruin (FoR).
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Conclusion & Impact:We also obtain FoR under the excess of loss reinsurance arrangement and examine the effect of reinsurance on the FoR.
🔬Design:Research Article
📍Scope:Comprehensive Sample
⚙️Variables:conditional time of ruin · exact finite time ruin probability · the force of ruin

Abstract

This paper introduces a hazard rate function for the time of ruin to calculate the conditional probability of ruin for very small time intervals. We call this function as the force of ruin (FoR). We obtain the expected time of ruin and conditional expected time of ruin from the exact finite time ruin probability with exponential claim amounts. Then, we introduce the FoR which gives the conditional probability of ruin and the condition is that ruin has not occurred at time t. We analyse the behaviour of the FoR function for different initial surpluses over a specific time interval. We also obtain FoR under the excess of loss reinsurance arrangement and examine the effect of reinsurance on the FoR.

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Cite This Article

ŞAHİN, Ş., KARAGEYİK, B. B. (2018). THE FORCE OF RUIN. Sigma Mühendislik ve Fen Bilimleri Dergisi, Cilt: 36 - Sayı: 2, 563–575. https://ajindex.com/articles/419189

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