Actuarial Technology: Fudan Excellence

Author: Yang Quancheng, Editor-in-Chief
Publisher:
Publishing Date: 2006-07-01
Features: Actuarial science is an interdisciplinary field formed by disciplines such as mathematics, economics, finance, law, financial and insurance, and investment. Its application scope involves various economic fields, including insurance (including social insurance and protection), enterprises, securities, investment, etc. Through the application of actuarial techniques, it can effectively predict, control, or even mitigate the risks faced by various economic sectors, especially financial risks. With the rapid development of China's insurance industry and its further opening up, it has gradually become a necessary condition for the survival and development of the insurance industry in fierce market competition. The origin of actuarial science lies in the calculation of premiums for life insurance. In 1693, the great British mathematician and astronomer Edmond Halley compiled the "Life Table," marking the birth of actuarial science. In 1757, the British James Dodson first proposed that premiums should be charged based on the age and sum insured of the insured, i.e., that the calculation of premiums should consider the magnitude of mortality. From then on, actuarial thought officially entered the field of life insurance. In 1764, the British Edward Ward founded the world's "first life insurance company—the London Assurance Society. He adopted James Dodson's ideas and methods for calculating premiums and established a dedicated actuarial department to analyze the sources of profit for the insurance company, compile life tables, determine population mortality, etc. He used actuarial techniques as the basis for insurance business decisions, ensuring the stability and leading performance of the insurance company. Especially in modern insurance companies, actuarial science has become the core technology of the insurance industry. When an insurance company underwrites a certain insurance risk, it must first assess and predict the potential loss risks of that risk to establish scientific insurance premiums. After collecting premiums, the company must set aside various necessary reserves to ensure the stability of the insurance company's operations and fulfill its insurance liabilities. It must also scientifically allocate the remaining premium income after setting aside reserves and covering necessary operating costs to achieve certain investment returns. For catastrophic losses, to ensure the sound operation of the company, it is also necessary to reasonably establish a reinsurance plan, and so on. Most risk analyses that significantly impact the financial condition of an insurance company cannot be separated from the application of actuarial techniques. To date, the introduction of actuarial science into China has only a 17-year history. During this period, people have gradually moved from being unfamiliar with actuarial science to recognizing it, and in the insurance industry, it has been recognized, accepted, and initially applied. The requirements for the quality of insurance professionals have also gradually increased: insurance companies not only need high-quality actuarial professionals but also insurance professionals who possess a certain actuarial mindset. However, to this day, there are few truly satisfying actuarial textbooks for different levels. The publication of this book is precisely to meet this demand. This book was carefully written and researched by the author based on years of teaching experience and insights, as well as references to a large number of domestic and international textbooks, literature, and research results, as well as the actuarial practices of domestic insurance companies. Its content system is rigorous and coordinated, the knowledge structure is well-organized, the knowledge is explained in an accessible manner, and it includes an appropriate number of examples and exercises to help readers deeply understand, master, and apply the material. This book is divided into 14 chapters, with Chapters 1 to 10 covering life insurance actuarial techniques and Chapters 11 to 14 covering non-life insurance actuarial techniques. Among them, Chapters 1 to 7 were written by Yang Quancheng, Chapters 8 to 10 were written by Li Yiming, and Chapters 11 to 14 were written by Chen Feiyue. At the time of this book's publication, it received strong support from the leadership of the Insurance Vocational College, the relevant leaders of the Academic Affairs Office, and the head of the Insurance Department. Among them, our college's professor Wu Jinwen paid great attention to the publication of this book even amidst his busy schedule, personally reviewing and correcting any inappropriate parts and providing valuable suggestions for its publication. We express our sincere gratitude. At the same time, we also want to thank the publisher for the hard work put into the publication of this book.