Hi Jia
You are right that this chapter is fairly formulae heavy :-(. Hopefully by the time you've practised past questions though, many of the formulae will start to embed themselves. This is what I recommend my tutorial students learn:
Definition of a Poisson process N(t)
Definition of a compound Poisson process: S(t) = X1 + ... + XN(t) where N(t) is Poi(λt) and Xi is the amount of the ith claim. {Xi} are i.i.d.
Definition of the surplus process: U(t) = U + ct - S(t)
Definition of premium: c = (1+θ)λE[X]
Definition of the four ruin probabilities: Ψ(U), Ψ(U,t), Ψh(U), Ψh(U,t)
Know how the factors: U, t, θ, λ, μ, σ^2 affect the ultimate and finite probabilities of ruin
Be able to solve λ +cr = λMX(r) for the adjustment coefficient r
Lundberg’s inequality: Ψ(U) ≤ exp(rU)
Definition of insurer's expected profit = θλE[X]
Be able to solve λ +cnetr = λMY(r) for the adjustment coefficient in the presence of reinsurance
Definition of cnet = (1+θ) λ E - (1+ξ) λ E[SR]
Definition of insurer's expected profit in presence of reinsurance = cnet - E[SI]
Derivation of formulae for upper bounds on adjustment coefficient: R < 2θm1/m2 where m1 = E[X] and m2 = E[X^2]
Derivation of formulae for lower bounds on adjustment coefficient: R > (1/M) ln (c/λm1) where claim amounts are continuously distributed on (0, M)
Distribution of time until the first claim for a Poisson process: T1 is Exp(λ)
Calculate probability of ruin on first claim, P(U(T1) < 0) where U(T1) = U + cT1 - X1
Hope this is a useful list
Anna