Customer Reviews

Actuarial Mathematics for Life Contingent Risks (International Series on Actuarial Science)

5 star:		(1)
4 star:		(0)
3 star:		(0)
2 star:		(0)
1 star:		(0)

 

 

This is a wonderful text of life contingencies. It starts from the most basic survival models and life insurances and then goes all the way to multiple state models and their applications in more complex products such as equity linked insurance. There are lots of practical examples on how to put realistic models into work using spreadsheet program and one would not need to assume constant mortality or flat yield curve anymore.

This book also features the very important theme of risk management in life insurance industry. It explains very clearly why a naive central limit theorem kind of normal approximation that actuaries have accustomed to for decades would not work because of changing environmental and economic conditions. Emerging cost methods, profit vector, cashflow testing and quantile methods are all discussed.

I highly recommend this book to actuarial students who want to know the principles of life contingencies and how theory is put into practice.