TAIL PROBABILITIES FOR A RISK PROCESS WITH SUBEXPONENTIAL
JUMPS IN A REGENERATIVE AND DIFFUSION ENVIRONMENT
Abstract: In this paper we find a nonexponential Lundberg approximation of the ruin
probability in a Cox model, in which a governing process has a regenerative structure and
claims are light-tailed or have an intermediate regularly varying distribution. Examples
include an intensity process being reflected Brownian motion, square functions of the
Ornstein-Uhlenbeck process and splitting reflected Brownian bridges. In particular, we
consider a non-Markovian intensity process.
1991 AMS Mathematics Subject Classification: Primary 60G70; Secondary
60J15, 60J60, 60J65.
Key words and phrases: Ruin probability, Cox process, diffusion process, exponential
change of measure.