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MARTINGALE METHOD FOR RUIN PROBABILITY IN AN AUTOREGRESSIVE MODEL WITH CONSTANT INTEREST RATE

Published online by Cambridge University Press:  27 February 2003

Hailiang Yang
Affiliation:
Department of Statistics and Actuarial Science, The University of Hong Kong, Hong Kong, E-mail: [email protected]
Lihong Zhang
Affiliation:
Department of Mathematical Finance, Beijing University, Beijing, People's Republic of China

Abstract

In this article, we consider a discrete-time insurance risk model. An autoregressive model is used to model both the claim process and the premium process. The probability of ruin is examined in a model with a constant interest rate. Both exponential and nonexponential upper bounds are obtained for the ruin probability of an infinite time horizon.

Type
Research Article
Copyright
© 2003 Cambridge University Press

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