Extended reduced-form framework for non-life insurance

In this paper we propose a general framework for modeling an insurance liability cash flow in continuous time, by generalizing the reduced-form credit risk and life insurance. particular, assume nontrivial dependence structure between reference filtration internal filtration. We apply these results pricing hedging non-life liabilities hybrid financial markets, while taking into account role of inflation under benchmarked risk-minimization approach. This offers at same time flexible structure, explicit treatable pricing-hedging formula.