Modern Actuarial Theory and Practice: 2nd Edition (Hardback) book cover

Modern Actuarial Theory and Practice

2nd Edition

By Philip Booth, Robert Chadburn, Steven Haberman, Dewi James, Zaki Khorasanee, Robert H. Plumb, Ben Rickayzen

Chapman and Hall/CRC

840 pages | 45 B/W Illus.

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Hardback: 9781584883685
pub: 2004-12-28
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In the years since the publication of the best-selling first edition, the incorporation of ideas and theories from the rapidly growing field of financial economics has precipitated considerable development of thinking in the actuarial profession. Modern Actuarial Theory and Practice, Second Edition integrates those changes and presents an up-to-date, comprehensive overview of UK and international actuarial theory, practice and modeling. It describes all of the traditional areas of actuarial activity, but in a manner that highlights the fundamental principles of actuarial theory and practice as well as their economic, financial, and statistical foundations.


"…The authors have updated the first edition of the book to reflect developments in the actuarial profession since the publication of the first edition in 1998, [and] to integrate theories and applications in the rapidly growing field of financial economics … . Another major development of the new edition is the introduction of a new section on actuarial applications in health insurance. … it can serve as important study material for actuarial students, as well as a desk reference for actuarial professionals in respect to practical actuarial issues."

-The Journal of Risk and Insurance

"The scope of this book is extensive, covering much of actuarial practice. … It should probably be in the library of a university with an extensive actuarial science program."

-MAA Review

"The publication of the first edition of Modern Actuarial Theory and Practice in 1998 marked an important step in the emergence of new actuarial textbooks in the English language … providing an introduction to the practical applications of modern development in actuarial science across a range of practice areas … The new edition of Modern Actuarial Theory and Practice will offer valuable additional study material to those preparing for the Core Applications examination of the UK actuarial profession, and similar-level studies in other countries, as well as being a convenient general textbook for every qualified actuary to have on their bookshelf. I congratulate the authors on bringing the material together for this book and hope that it will be widely used by students and by qualified actuaries around the world."

-From the Foreword by Chris Daykin, CB, MA, FIA, Chairman, Education Committee of the Groupe Consultatif

Table of Contents


The Widening Scope of Actuarial Theory and Practice

Investments and Valuation

General Principles of Asset Allocation

Investment Risk

Portfolio Selection Techniques and Investment Modeling


Fundamental Features of Life Insurance

Nonparticipating Life Insurance

Participating Life Insurance

The Regulation of Solvency and its Effect on the Emergence

of Profit

Life Office Risks and Risk Management

The Actuarial Role in Life Office Management


Introduction to General Insurance

General Insurance Accounts

Premium Rating




Types of Pension Plan

Actuarial Modeling of Defined-Benefit Plans

Investment Strategies for Defined-Benefit Plans

Individual Pension Choices


An Introduction to Health Insurance

Income Protection Insurance

Critical Illness

Long-Term Care

Private Medical Insurance

Subject Categories

BISAC Subject Codes/Headings:
MATHEMATICS / Probability & Statistics / General