Life insurance actuarial basics

Author: Yang Jingping
Publisher:
Publish Date: 2002-10-01
Features: This book introduces the basic models and methods of life insurance actuarial science. It systematically presents random models for product pricing and reserve calculation in insurance, and provides in-depth discussions on the properties of these models and their relationships. On this basis, it offers calculation methods for premiums and reserves for different types of insurance. The book aims to combine theory with practice and serves as a foundation for life insurance actuarial science, making it suitable as an introductory textbook for the subject. The book is divided into four parts (13 chapters). Part I and Part II are the theoretical foundation of the book; Part III and Part IV discuss practical issues. Part I (3 chapters) introduces survival models, using stochastic methods to discuss the uncertainty of individual lifespans. Part II (4 chapters) introduces the concept of actuarial present value to describe the load premium used by insurers. Part IV (4 chapters) covers net reserves. The book includes numerous examples to help readers understand the content and provides exercises at the end of each chapter, with answers to multiple-choice questions. The prerequisites for this book are elementary probability theory and interest theory. To facilitate learning, Appendix I at the end of the book provides basic knowledge of interest theory and fundamental formulas of probability theory for reference. This book can be used as a textbook and teaching reference for financial mathematics and actuarial science programs in applied mathematics, finance, and insurance at universities and colleges. It is also suitable for actuaries and insurance professionals as a reference and reading material. The content of the book covers the life insurance part of Course 3 of the Society of Actuaries (SOA) actuarial exams, making it a valuable reference for those preparing for various actuarial exams.