In this talk I will describe recent work on modeling risk processes in low income households for which a proportional loss model can capture the catastrophic effects of income loss. These models are particularly adept for households with low liquidity, in which a governmental or NGO can provide subsidies for insurance. The mathematical analysis of the model combines stochastic processes, integro-differential equations and numerical calculations. This analysis help determine conditions in which the insured population can avoid a certainty of ruin. This is join work with Kira Henshaw, Jose Flores-Contro, Jorge Ramirez, Sooie-Hoe Loke and Coriina Constantinescu.