Actuarial Mathematics for Life Contingent Risks

This very readable book prepares students for professional exams and for real-world actuarial work in life insurance and pensions.

David C. M. Dickson (Author), Mary R. Hardy (Author), Howard R. Waters (Author)

9781108478083, Cambridge University Press

Hardback, published 19 December 2019

782 pages, 11 b/w illus. 4 tables 300 exercises
23.4 x 15.9 x 3.8 cm, 1.34 kg

Review of the first edition: 'The book is well written, well organized, and easy to read. It may be an excellent textbook for both undergraduate and graduate programs in actuarial science. It is also a rich source of useful information for practitioners of the actuarial profession and financial risk managers who seek a practical and inspiring guide to liability cash flow modeling and valuation.' Scandinavian Actuarial Journal

The substantially updated third edition of the popular Actuarial Mathematics for Life Contingent Risks is suitable for advanced undergraduate and graduate students of actuarial science, for trainee actuaries preparing for professional actuarial examinations, and for life insurance practitioners who wish to increase or update their technical knowledge. The authors provide intuitive explanations alongside mathematical theory, equipping readers to understand the material in sufficient depth to apply it in real-world situations and to adapt their results in a changing insurance environment. Topics include modern actuarial paradigms, such as multiple state models, cash-flow projection methods and option theory, all of which are required for managing the increasingly complex range of contemporary long-term insurance products. Numerous exam-style questions allow readers to prepare for traditional professional actuarial exams, and extensive use of Excel ensures that readers are ready for modern, Excel-based exams and for the actuarial work environment. The Solutions Manual (ISBN 9781108747615), available for separate purchase, provides detailed solutions to the text's exercises.

Preface to the third edition
1. Introduction to life and long term health insurance
2. Survival models
3. Life tables and selection
4. Insurance benefits
5. Annuities
6. Premium calculation
7. Policy values
8. Multiple state models
9. Multiple decrement models
10. Joint life and last survivor benefits
11. Pension mathematics
12. Yield curves and non-diversifiable risk
13. Emerging costs for traditional life insurance
14. Universal life insurance
15. Emerging costs for equity-linked insurance
16. Option pricing
17. Embedded options
18. Estimating survival models
19. Stochastic longevity models
Appendix A. Probability and statistics
Appendix B. Numerical techniques
Appendix C. Monte Carlo simulation
Appendix D. Tables
References
Index.

Subject Areas: Insurance & actuarial studies [KFFN], Economic statistics [KCHS]