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Survival probabilities in bivariate risk models, with application to reinsurance

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This paper deals with an insurance portfolio that covers two interdependent risks. The central model is a discrete-time bivariate risk process with independent claim increments. A continuous-time version of compound Poisson type is also examined. Our main purpose is to develop a numerical method for determining non-ruin probabilities over a finite-time horizon. The approach relies on, and exploits, the existence of a special algebraic structure of Appell type. Some applications in reinsurance to the joint risks of the cedent and the reinsurer are presented and discussed, under a stop-loss or excess of loss contract.

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CASTAÑER, Anna, CLARAMUNT BIELSA, M. Mercè and LEFÈVRE, Claude. Survival probabilities in bivariate risk models, with application to reinsurance. Insurance Mathematics and Economics. 2013. Vol. 53, num. 3, pags. 632-642. ISSN 0167-6687. [consulted: 3 of July of 2026]. Available at: https://hdl.handle.net/2445/102782

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