A characterization of ruin-inducing probability measures in a renewal risk model

Fuente: arXiv
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Main Authors: Tzaninis, Spyridon M., Bozikas, Apostolos
Format: Preprint
Published: 2026
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_version_ 1866914509770194944
author Tzaninis, Spyridon M.
Bozikas, Apostolos
author_facet Tzaninis, Spyridon M.
Bozikas, Apostolos
contents In this work, we derive a complete characterization of all ruin-inducing probability measures that preserve the structure of a given compound renewal process in terms of suitable pairs of functions $(γ,δ)$. This result allows us to obtain an explicit representation of the infinite-time ruin probability as an expectation under any ruin-inducing probability measure. A key feature of our approach is that the construction of these measures does not rely on the existence of moment generating functions, and is therefore applicable to heavy-tailed claim size distributions. The proposed framework includes the classical Esscher transform as a special case.
format Preprint
id arxiv_https___arxiv_org_abs_2604_24061
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle A characterization of ruin-inducing probability measures in a renewal risk model
Tzaninis, Spyridon M.
Bozikas, Apostolos
Probability
Primary 91G05, secondary 60G44, 60K05
In this work, we derive a complete characterization of all ruin-inducing probability measures that preserve the structure of a given compound renewal process in terms of suitable pairs of functions $(γ,δ)$. This result allows us to obtain an explicit representation of the infinite-time ruin probability as an expectation under any ruin-inducing probability measure. A key feature of our approach is that the construction of these measures does not rely on the existence of moment generating functions, and is therefore applicable to heavy-tailed claim size distributions. The proposed framework includes the classical Esscher transform as a special case.
title A characterization of ruin-inducing probability measures in a renewal risk model
topic Probability
Primary 91G05, secondary 60G44, 60K05
url https://arxiv.org/abs/2604.24061