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Research Article Open access CC BY 4.0

Probability Risk Model of Claim Amount Affected by a Threshold Value

Qiao Li, Zhenhua Bao

Asian Journal of Probability and Statistics · pp. 1–17 · Published 10 Aug 2022

10.9734/ajpas/2022/v19i230462

Abstract

In this paper, we consider a new risk model of claim amount affected by a threshold value. The comparision between the claim interval and the threshold will affect the distribution of claims. The hypothesis of the model is presented and then we derive the roots of the Lundberg equation, and the expected discounted penalty function and its Laplace Transform. Besides, the Gerber- Shiu penalty function and some other functions are given when the initial surplus is zero and when they satifie some defective renewal equations. Some explicit expressions about the ruin probability are obtained too.

Threshold value Gerber-Shiu penalty function Lundberg equation ruin probability

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