In this paper, we consider a risk model which allows the insurer to partially reflect the recent claim experience in the determination of the next period’s premium rate. In a ruin context, similar mechanisms to the one proposed in this paper have been studied by, e.g., Tsai and Parker (2004),...

In this paper, we propose a new drawdown-based regime-switching (DBRS) Lévy insurance model in which the underlying drawdown process is used to model an insurer’s level of financial distress over time, and to trigger regime-switching transitions. By some analytical arguments, we derive...

This study investigated the emotional response in a disjunction condition. Participants were presented with a hypothetical three-condition scenario in which they imagined that they had submitted their application for admission to two universities. In the two conditions of certainty, the...

Everyone faces uncertainty on a daily basis. Two kinds of probability expressions, verbal and numerical, have been used to characterize the uncertainty that we face. Because our cognitive concept of living things differs from that of non-living things, and distinguishing cognitive concepts might...

In ruin theory, an insurer’s income process is usually assumed to grow at a deterministic rate of c 0 over time. For instance, both the well-known Cramér-Lundberg risk process and the Sparre Andersen risk model have this assumption built in the construction of their respective surplus...