Collective Risk and Ruin Theory

Describe common reinsurance arrangements (proportional, excess of loss, stop-loss).

Calculate the insurer's and reinsurer's share of claims under different reinsurance structures.

State and apply formulas for the moments of aggregate claims in the collective risk model.

Calculate the adjustment coefficient for a given surplus process.

Apply Lundberg's inequality and the Cramér-Lundberg approximation to estimate the probability of ruin.

Calculate the probability of ultimate ruin for discrete claim amounts using recursive methods.

Assess the effect of reinsurance on the adjustment coefficient and the probability of ruin.