Book description
Praise for the Third Edition
"This book provides in-depth coverage of modelling techniques
used throughout many branches of actuarial science. . . . The
exceptional high standard of this book has made it a pleasure to
read." -Annals of Actuarial Science
Newly organized to focus exclusively on material tested in the
Society of Actuaries' Exam C and the Casualty Actuarial Society's Exam
4, Loss Models: From Data to Decisions, Fourth Edition
continues to supply actuaries with a practical approach to the key
concepts and techniques needed on the job. With updated material and
extensive examples, the book successfully provides the essential
methods for using available data to construct models for the frequency
and severity of future adverse outcomes.
The book continues to equip readers with the tools needed for the
construction and analysis of mathematical models that describe the
process by which funds flow into and out of an insurance system.
Focusing on the loss process, the authors explore key quantitative
techniques including random variables, basic distributional
quantities, and the recursive method, and discuss techniques for
classifying and creating distributions. Parametric, non-parametric,
and Bayesian estimation methods are thoroughly covered along with
advice for choosing an appropriate model.
New features of this Fourth Edition include:
- Expanded discussion of working with large data sets, now including
more practical elements of constructing decrement tables
- Added coverage of methods for simulating several special situations
- An updated presentation of Bayesian estimation, outlining
conjugate prior distributions and the linear exponential family as
well as related computational issues
Throughout the book, numerous examples showcase the real-world
applications of the presented concepts, with an emphasis on
calculations and spreadsheet implementation. A wealth of new exercises
taken from previous Exam C/4 exams allows readers to test their
comprehension of the material, and a related FTP site features the
book's data sets.
Loss Models, Fourth Edition is an indispensable resource for
students and aspiring actuaries who are preparing to take the SOA and
CAS examinations. The book is also a valuable reference for
professional actuaries, actuarial students, and anyone who works with
loss and risk models.
To explore our additional offerings in actuarial exam
preparation visit www.
wiley. com/go/c4actuarial .
STUART A. KLUGMAN, PhD, FSA, CERA, is Staff Fellow (Education)
at the Society of Actuaries (SOA) and Principal Financial Group
Distinguished Professor Emeritus of Actuarial Science at Drake
University. He served as SOA vice-president from 2001-2003.
HARRY H. PANJER, PhD, is Distinguished Professor Emeritus in
the Department of Statistics and Actuarial Science at the University
of Waterloo, Canada. He is past president of the Canadian Institute of
Actuaries and the Society of Actuaries.
GORDON E. WILLMOT, PhD, FSA, FCIA, is Munich Re Chair in
Insurance and Professor in the Department of Statistics and Actuarial
Science at the University of Waterloo, Canada. Dr. Willmot currently
focuses his research on the analysis of insurance losses, with an
emphasis on the theory and application of aggregate claims models.
