Insurance Actuarial Technology

Author: Zhang Qinghong
Publisher:
Publish Date: 2004-08-01
Features: This book attempts to unify the content of life insurance actuarial science and non-life insurance actuarial science, hoping to clearly explain the basic principles and methods of insurance actuarial science in a shorter and simpler language. Therefore, this book makes selections in the content of actuarial science, avoids using specialized actuarial symbols as much as possible, and focuses on explaining the principles, methods, and applications of insurance actuarial science. The content of this book is organized according to the pricing process of insurance products.
Chapter 1 discusses the characterization of insurable risks.
Chapter 2 discusses the pricing tools of long-term insurance products—actuarial value, and also lists some applications of actuarial present value.
Chapter 3 considers the calculation of an insurer's solvency cost in a more general way.
Chapter 4 explains the principles of premium calculation. The pricing method of insurance products in this book is actually a cost-based pricing method, which is also known as marginal cost pricing in economics. In practical applications, insurance products should adopt a value-driven pricing method. However, marginal cost pricing is the foundation of other pricing methods.
Chapter 5 analyzes the potential liabilities of insurance products from the perspective of an insurer.
Chapter 6 discusses the testing techniques of insurance products.
Chapter 7 explains how insurers adjust premiums based on the information and data they have, obtaining experience premiums. Insurers can implement reward and penalty pricing for insured individuals based on historical data. This chapter introduces two widely used reward and penalty pricing techniques.
Chapter 8 discusses how insurers implement differentiated pricing based on the risk characteristics of different insured individuals, which is also known as risk stratification. Additionally, this chapter introduces a mature premium presentation method—the point system.
Chapter 9 analyzes another liability of insurers—unclosed claims.
The final chapter explores another way insurers transfer risk: transferring it to the insured through the design of insurance products. Actuarial techniques are actually a universal language with broad applications, such as in the valuation of asset values, the assessment and analysis of potential liabilities, and product pricing.