Browsing by Author "Khwatenge, Elvira Immaculate"

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A Web-Based Private Permissioned Blockchain for Ionizing Radiation Management: A Case Study of The Tanzania Atomic Energy Commission
(NM-AIST, 2024-09) Khwatenge, Elvira Immaculate
This dissertation is about a study on insurance companies that have experienced ruin but have a possibility of recovery from ruin. The study has proposed a perturbed mathematical model, analysed and used it for modelling the portfolio of insurance companies with possibilities of recovery after ruin. Return on investment and refinancing have been used as approaches for overcoming ruin. The model was analysed for various cases of possibilities of recovery after ruin in the closed interval [0, 1]. The basic perturbed classical risk process was later compounded by refinancing and return on investment. The Hamilton-Jacobi-Bellman and Integro-Differential Equation of Volterra type were obtained. The Volterra Integro-Differential Equation for the survival function of an insurance company was converted to a third order ordinary differential equation and later converted into a system of first order ordinary differential equations which was solved numerically using the fourth order Runge-Kutta method. The results indicate that the return on investment plays a vital role in reducing ultimate ruin and that as the possibility of recovery for insurance companies increases, the return on investment reduces ruin much faster. Also, the survival function increases with the increasing intensity of the counting process but decreases with an increase in the instantaneous rate of stock return and return volatility. Because an insurance company faces more risks, these results also suggest that insurance companies should increase their counting process since doing so will help the insurance companies in servicing more customers.