Description: background history of the insurance industry and the role of actuaries within it, followed by the current environment and anticipated future environment.

Description: Investment Fallacies: The Fallacy of the Fed Model

Description: In this paper, we introduce a political risk variable, d, to measure risk of foreign direct investment FDI. The political risk variable has opposite effects of loss reduction and loss prevention in Ehrlich and Becker 1972. The unique characteristics of political risk insurance make the applications of actuarially-based pricing models infeasible. In this study, by taking into account the effects of self-protection and self-insurance through the variable d and by maximizing utility function, we find the equilibrium for insured and insurer in a competitive market and in a monopoly one. In addition, under the equilibrium status, the boundary for the amount of investment, the insurance coverage, and the minimum required rate of return on the FDI are derived.

Description: This is a presentation from 43rd Actuarial Research Conference ARC, Regina, August 14–16, 2008. This talk will present the moment generating function of the discounted compound Poisson aggregate sums when the deflated claims are PH distributed and moment generating function of the discounted compound renewal sums.

Description: An insurance company starts with an initial surplus, collects premium, pays claims to policyholders and pays dividends to stockholders. What remains is the following year’s surplus. The process continues. This paper describes how to calculate the distribution of surplus for any given year. With these distributions, one can make the calculations of premiums and dividends.

Description: This paper introduces a new direction for evaluating numerically survival probabilities pointed out by H. Seal in his book ‘Survival Probabilities: The goal of Risk Theory’. Some of special cases can be considered as a weighted Poisson process with an infinitely divisible mixing distribution. This property is well known for the negative binomial case [gamma mixing distribution].

Description: In this expository paper several comments are made with respect to the statistical independence of the curtate future lifetime and the fractional part of the future lifetime, both of a general status. In particular, the conditions for independence need to be stated carefully. The last-survivor status is cited as an example. More general assumptions than the uniform distribution of deaths assumption are then considered, together with applications to insurances, annuities, and reserves. Similar results to those under the uniform distribution of deaths assumption are obtained. Brief comments are made with respect to contingent probabilities in multiple lives and multiple decrement theory.

Description: This paper thoroughly describes risk premium calculation based on an insurance portfolio consisting of policies risks insured over a finite time interval.

Description: Discusses the influence of market-consistent pricing proponents.

Description: The two-parameter Pareto distribution is a commonly used model in reliability and risk modeling. Minimum variance unbiased estimates of the parameters of Pareto distribution are not known. In this paper, we propose and investigate a method of estimation of the parameters of the Pareto distribution. This method is based on minimization of the Kolmogorov-Smirnov distance between the empirical cumulative distribution function [cdf] and the cdf of the Pareto distribution.