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.
Table of Contents
The Widening Scope of Actuarial Theory and Practice
Investments and Valuation
General Principles of Asset Allocation
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
Life Office Risks and Risk Management
The Actuarial Role in Life Office Management
Introduction to General Insurance
General Insurance Accounts
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
Private Medical Insurance
"…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."
"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