Actuarial Studies

This is a summary of the numbered formulas and end of chapter concepts for EXAM MLC - Models for Life Contingencies.

Details of Reference:
Book Title: Study Manual for SOA Exam MLC Life Contingencies
Edition: 14th
Author of Reference: Abraham Weishaus, PhD, FSA, CFA, MAAA

For erratum, please let me know.

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Monica Revadulla

This paper is intended as a guide to building insurance risk (loss) models. A typical model for insurance risk, the so-called collective risk model, treats the aggregate loss as having a compound distribution with two main components: one characterizing the arrival of claims and another describing the severity (or size) of loss resulting from the occurrence of a claim. In this paper we first present efficient simulation algorithms for several classes of claim arrival processes. Then we review a collection of loss distributions and present methods that can be used to assess the goodness-of-fit of the claim size distribution. The collective risk model is often used in health insurance and in general insurance, whenever the main risk components are the number of insurance claims and the amount of the claims. It can also be used for modeling other non-insurance product risks, such as credit and operational risk.

The article presents the analysis and
systematization of basic pricing models in cyber risk
insurance. The most common models and
approaches in modern publications are compared by
the author. Also, the article pays identifies their
advantages and disadvantages. The author algorithm
of choosing pricing models was developed. The
author has developed an example of the application
of the algorithm of the models in practice.

Keywords: information risks; actuarial
calculations, pricing models; cyber risk insurance.

In this paper, we present a procedure for consistent estimation of the severity and frequency distributions based on incomplete insurance data and demonstrate that ignoring the thresholds leads to a serious underestimation of the ruin probabilities. The event frequency is modelled with a non-homogeneous Poisson process with a sinusoidal intensity rate function. The choice of an adequate loss distribution is conducted via the in-sample goodness-of-fit procedures and forecasting, using classical and robust methodologies.

Regresi logistik multinomial merupakan regresi logistik yang digunakan saat variabel dependen mempunyai sifat polichotomous atau multinomial. Hasil analisis yang diperoleh menyatakan bahwa usia pemegang polis dan cara pembayaran premi secara bersama-sama berpengaruh terhadap status polis asuransi. Usia dikelompokan menjadi dua kelompok yaitu: usia dibawah 30 tahun dan usia antara 31-35 tahun, dengan 4 jenis cara pembayaran yaitu: sekaligus, tahunan, semesteran dan kuartalan. Diperoleh estimasi peluang terbesar pada kelompok usia 31-35 tahun dengan cara pembayaran sekaligus yaitu sebesar 0,630.

This paper is intended as a guide to building insurance risk (loss) models. A typical model for insurance risk, the so-called collective risk model, treats the aggregate loss as having a compound distribution with two main components: one characterizing the arrival of claims and another describing the severity (or size) of loss resulting from the occurrence of a claim. In this paper we first present efficient simulation algorithms for several classes of claim arrival processes. Then we review a collection of loss distributions and present methods that can be used to assess the goodness-of-fit of the claim size distribution. The collective risk model is often used in health insurance and in general insurance, whenever the main risk components are the number of insurance claims and the amount of the claims. It can also be used for modeling other non-insurance product risks, such as credit and operational risk.

Catalogue Essay for “Who Thinks The Future?”
a Peer Sessions group exhibition featuring Josh Bilton, Darren Harvey-Regan, Jenny Moore, David Mabb, Steven Ounanian, Kate Pickering and Charlotte Warne Thomas
curated by Tom Trevatt
Lewisham Arthouse, London
25 September – 5 October, 2014

In this paper, we present a procedure for consistent estimation of the severity and frequency distributions based on incomplete insurance data and demonstrate that ignoring the thresholds leads to a serious underestimation of the ruin probabilities. The event frequency is modelled with a non-homogeneous Poisson process with a sinusoidal intensity rate function. The choice of an adequate loss distribution is

In this paper, we present a procedure for consistent estimation of the severity and frequency distributions based on incomplete insurance data and demonstrate that ignoring the thresholds leads to a serious underestimation of the ruin probabilities. The event frequency is modelled with a non-homogeneous Poisson process with a sinusoidal intensity rate function. The choice of an adequate loss distribution is conducted via the in-sample goodness-of-fit procedures and forecasting, using classical and robust methodologies.

This paper introduces a new framework for modelling the joint development over time of mortality rates in a pair of related populations with the primary aim of producing consistent mortality forecasts for the two populations. The primary aim is achieved by ...

This paper is intended as a guide to building insurance risk (loss) models. A typical model for insurance risk, the so-called collective risk model, treats the aggregate loss as having a compound distribution with two main components: one characterizing the arrival of claims and another describing the severity (or size) of loss resulting from the occurrence of a claim. In this paper we first present efficient simulation algorithms for several classes of claim arrival processes. Then we review a collection of loss distributions and present methods that can be used to assess the goodness-of-fit of the claim size distribution. The collective risk model is often used in health insurance and in general insurance, whenever the main risk components are the number of insurance claims and the amount of the claims. It can also be used for modeling other non-insurance product risks, such as credit and operational risk.

The same Americans who become incredulous over the idea that Social Security could become bankrupt or that the earth could run out of a sustainable supply of fossil fuel may soon have to confront the possibility that state and local governments could discontinue providing post retirement medical benefits for their employees. Is discontinuing post retirement health care a wise course of action? Do state and local governments have no choice but to discontinue these benefits? I would argue that to attract quality employees, the public sector cannot afford to abandon these benefits entirely. However, the new GASB accounting rules provide a unique window of opportunity for state and local governments to revisit their post retirement benefits (OPEB) plans, specifically their retiree health benefits. State and local government have choices but first they must confront head-on economic and demographic challenges confronting them today and for decades to come.

Note: Master's Government Administration Paper, December 11, 2005

The insurance trade in Zambia has seen incredible swing in the manner in which the business is shepherded having relocated from a monopoly in the pre-liberalization epoch to a free market after the liberalization of the economy in 1992. The aim of this study is to find out how cash flow risk management affects financial performance of insurance companies in Lusaka, Zambia (Multivariate Analysis)
The existing research employed a descriptive research enterprise to study the influence of risk management on financial performance of four insurance firms in Zambia; Sanlam Life Insurance, Madison Insurance Zambia, ZSIC, Prudential Insurance Zambia. This sort of information is eagerly accessible in the annual reports of the four firms and LUSE published handbooks. The information attained from financial reports contains; firm’s annual net income, total liabilities, claims incurred and premium earned, premium ceded and total assets, current assets and liabilities.
The results of this study ascertained that; this model can be shortened as a one-percent upsurge in the financial risk management outcomes to a decrease in the financial performance of the firm (ROA) by 1.0%, a 1% augmentation in the operational risk management will similarly decrease ROA by 77.3% while a surge in enterprise risk management by 1% will decrease the performance of the company by 1.5%. Furthermore, an upsurge in financial leverage primes to a 55.1% reduction on ROA. While an upsurge in firm size by one unit will surge ROA by 11% and 2.8% respectively
This research concentrated on cash flow risks and financial performance of top four insurance companies in Zambia and depended on secondary information. A study where information gathering depends on primary information i.e. thorough questionnaires and interviews covering all the top four insurance firms in Zambia is suggested so as to accolade this study.

This paper introduces a new framework for modelling the joint development over time of mortality rates in a pair of related populations with the primary aim of producing consistent mortality forecasts for the two populations. The primary aim is achieved by ...

In this paper, we present a procedure for consistent estimation of the severity and frequency distributions based on incomplete insurance data and demonstrate that ignoring the thresholds leads to a serious underestimation of the ruin probabilities. The event frequency is modelled with a nonhomogeneous Poisson process with a sinusoidal intensity rate function. The choice of an adequate loss distribution is conducted via the in-sample goodnessof-fit procedures and forecasting, using classical and robust methodologies.

We analyse the choice of the appropriate delivery mechanism(s) relevant to various types of microinsurance products in a developmental context like that prevailing in Bangladesh. By examining various delivery mechanisms under different institutional contexts, we analyse the conditions under which they operate best. Then we develop a few criteria that are likely to offer cost efficiency as well as customer acceptance, and judge between different schemes in light of these criteria, and dwell on the interface between the choice of the delivery model and the regulatory stance. Finally, we put forward a set of regulatory and supervisory directives that respect both product and process innovations and uphold the goals of cost efficiency, financial viability and client inclusivity.