Description: This paper is intended to acquaint actuaries with a simple and practical application of the ruin function technique in the determination of the C-2 mortality risk reserve needed for individual life insurance business. Followed by 2 discussion papers submitted

Description: A simplified model adapts very easily to simulation by a computer, and this is what the author has done with several selected pairs of probability distributions in order to calculate the probability of a casualty company's being ruined shortly after its establishment. From Transactions of Society of Actuaries 1969, Vol. 21, Pt. 1, No. 61.

Description: Most computations that are done within actuarial science entail using discrete death rates associated with incremental ages. It's not that continuous death rates cannot be used, it's just that discrete values tend to be more convenient to work with. Of the various continuous probability distributions, the one most closely associated with actuarial science may be the Gompertz distribution. This paper takes a closer look at the Gompertz, starting with the motivation behind Benjamin Gompertz proposing this particular distribution. Then the paper develops procedures to estimate the parameters for this distribution, and it ends with a brief example of the procedures presented in the paper.

Description: The purpose of this paper is to describe the application of the Monte Carlo technique to a practical situation in a company, group term rate making. It included a discussion of some of the problems encountered and the solution to these problems. Followed by several discussion papers submitted

Description: This paper investigates how the concepts of asset-liability matching can be used to shape investment strategy. From Transactions of Society of Actuaries 1980, Vol. 32.

Description: A presentation of a mathematics/statistics based approach for determining credibility factors for possible use in group health insurance premium rate setting and experience refund setting. Includes supporting mathematical proofs of approach. Followed by discussions submitted by several people

Description: Under Yaari's dual theory of risk, this paper determines the equilibrium separating contracts for high and low risks in a competitive insurance market, in which risks are defined only by their expected losses, that is, a high risk is a risk that has a greater expected loss than a low risk. The authors also determine the pooling equilibrium contract when insurers are assumed non-myopic. Utility theory generally predicts that optimal insurance indemnity payments are nonlinear functions of the underlying loss due to the nonlinearity of agents' utility functions. Under Yaari's dual theory, the authors show that under mild technical conditions the indemnity payment is a piecewise linear function of the loss, a common property of insurance coverages.

Description: This presentation discussed the Copula Methodology, which is the most popular methodology in multivariate modeling in finance and insurance. The definition, advantages, limitations, and uses of the Copula Methodology were presented. Some other multivariate models were discussed as well. From Actuarial Research Clearing House, 2012, Vol. 1.

Description: The dependent relationship between two lives is readily analyzed within the context of probability theory. This paper presents useful relationships between certain actuarial and probability functions and then explores measures of dependence. From Transactions of Society of Actuaries 1986, Vol. 38.

Description: This paper explores areas where fuzzy logic models may be applied to improve risk assessment and risk decision-making. It discusses the methodology, framework and process of using fuzzy logic systems for risk management. With the help of practical examples, it is hoped that it will encourage wise application of fuzzy logic models to risk modeling.