Summary |
Actuarial science is an interdisciplinary science comprising four subjects - mathematics, statistics, economics and finance . Statistics plays a key role in laying the foundation of actuarial calculations in the presence of uncertainty in the mortality pattern of society and under varying economical conditions. Actuarial calculations mainly involve determination of premium rates and computation of reserves. This book discusses the application of various basic concepts and statistical techniques in the determination of premium and reserves for a variety of standard insurance and annuity products, under s variety of conditions. Topics dealt with include application of utility theory to establish the feasibility of the insurance business, short term risk models, distribution theory related to the future life time random variable, construction of aggregate and select life table, important concepts of financial mathematics, annuities certain, term, endowment and whole life insurance products, monthly, quarterly, semi-annual and annual life annuities.
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