Claims reserving is central to the insurance industry. Insurance liabilities depend on a number of different risk factors which need to be predicted accurately. This prediction of risk factors and outstanding loss liabilities is the core for pricing insurance products, determining the profitability of an insurance company and for considering the financial strength (solvency) of the company.

Following several high-profile company insolvencies, regulatory requirements have moved towards a risk-adjusted basis which has lead to the Solvency II developments. The key focus in the new regime is that financial companies need to analyze adverse developments in their portfolios. Reserving actuaries now have to not only estimate reserves for the outstanding loss liabilities but also to quantify possible shortfalls in these reserves that may lead to potential losses. Such an analysis requires stochastic modeling of loss liability cash flows and it can only be done within a stochastic framework. Therefore stochastic loss liability modeling and quantifying prediction uncertainties has become standard under the new legal framework for the financial industry.

This book covers all the mathematical theory and practical guidance needed in order to adhere to these stochastic techniques. Starting with the basic mathematical methods, working right through to the latest developments relevant for practical applications; readers will find out how to estimate total claims reserves while at the same time predicting errors and uncertainty are quantified. Accompanying datasets demonstrate all the techniques, which are easily implemented in a spreadsheet. A practical and essential guide, this book is a must-read in the light of the new solvency requirements for the whole insurance industry

Disability insurance, long-term care insurance, and critical illness cover are becoming increasingly important in developed countries as the problems of demographic aging come to the fore. The private sector insurance industry is providing solutions to problems resulting from these pressures and other demands of better educated and more prosperous populations. Actuarial Models for Disability Insurance examines the actuarial structure of disability insurance, long-term care insurance, and critical illness cover, including problems encountered in the design and development of such insurances. Actuarial problems such as pricing and reserving are considered within the context of multiple state modeling, providing a vigorous and sound framework for analyzing personal insurances.

This volume is an exploration of the ethical issues raised by health insurance, which is particularly timely in the light of recent advances in medical research and political economy. Focusing on a wide range of areas, such as AIDS, genetic engineering, screening and underwriting, new disability legislation and the ethics of private and public health insurance, this comprehensive and sometimes controversial book provides an essential survey of the key issues in health insurance. Divided into two parts, the first considers the ethics of underwriting, risk assessment and the acceptance and refusal of insurance risk by insurers. Discussing the unjust treatment of high-risk applicants, the authors identify sources of unfairness to both parties of the insurance contract, indicating how reasonable trade-offs can be made. The second part considers the argument for a mix of public and private insurance for acute and long-term care, offering recommendations for changes in the balance of social insurance, and discussing the shift toward long-term contracts in private health care and pension insurance.

This volume is an exploration of the ethical issues raised by health insurance, which is particularly timely in the light of recent advances in medical research and political economy. Focusing on a wide range of areas, such as AIDS, genetic engineering, screening and underwriting, new disability legislation and the ethics of private and public health insurance, this comprehensive and sometimes controversial book provides an essential survey of the key issues in health insurance. Divided into two parts, the first considers the ethics of underwriting, risk assessment and the acceptance and refusal of insurance risk by insurers. Discussing the unjust treatment of high-risk applicants, the authors identify sources of unfairness to both parties of the insurance contract, indicating how reasonable trade-offs can be made. The second part considers the argument for a mix of public and private insurance for acute and long-term care, offering recommendations for changes in the balance of social insurance, and discussing the shift toward long-term contracts in private health care and pension insurance.

In the modern Western world, we tend to be insured by the state or for-profit insurers. We have privileged this system over mutual or micro-insurance, whose long and rich history we tend to forget. Yet, mutual and micro-insurance is becoming increasingly important, both in the Western and in the non-Western world and bears re-examination. This book traces the track record of mutual insurance from 1550 to the present, examining provisions for burial, sickness, unemployment, old age, and widowhood. The author seeks to address such topics as the type of risks micro-insurance covered between 1550 and 2015; how it was organized throughout its history; who provided the coverage; and how contributions, benefit levels, and conditions have changed. Importantly, the author explores why this system has worked through, and endured, the test of time. Mutual insurance can, for instance, overcome classic insurance problems such as adverse selection and moral hazards. The author demonstrates that the study of the position micro-insurance historically assumed in mixed economies of welfare presents interesting lessons for today's insurance market, as well as for today's mutualism.

Complete profiles of today's most successful annuities... Expert tips on how to maximize your returns...

Variable annuities now outpace mutual funds as the number one choice among street-smart investors—and it's easy to see why. Tax-deferred, commission-free, easy to purchase and redeem, carrying less risk than most other instruments, and exhibiting a superb overall performance, they are an indispensable addition to any low-risk, high-yield portfolio. Now, in the first book of its kind, financial planning expert Gordon Williamson demystifies annuities investing. Writing in a straightforward, down-to-earth style, he:

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The word is out: variable annuities are one of the best investment instruments developed in this century. Now find out how you can take full advantage of their unprecedented earning potential with The 100 Best Annuities You Can Buy.

This textbook provides a broad overview of the present state of insurance mathematics and some related topics in risk management, financial mathematics and probability. Both non-life and life aspects are covered. The emphasis is on probability and modeling rather than statistics and practical implementation. Aimed at the graduate level, pointing in part to current research topics, it can potentially replace other textbooks on basic non-life insurance mathematics and advanced risk management methods in non-life insurance. Based on chapters selected according to the particular topics in mind, the book may serve as a source for introductory courses to insurance mathematics for non-specialists, advanced courses for actuarial students, or courses on probabilistic aspects of risk. It will also be useful for practitioners and students/researchers in related areas such as finance and statistics who wish to get an overview of the general area of mathematical modeling and analysis in insurance.

Concentrating on practical examples, this text is presented in the style of a workbook for anyone involved in reinsurance operations. It includes 33 slip examples complete with underwriting information and comment. Chapters include coverage of reinsurance line limits and retentions, expenses, accumulation and reinsurance protection, systems and controls, rescuing and underwriting examples.

Practical Risk Theory is designed to be a textbook for practising actuaries and student actuaries on the practical aspects of stochastic modelling of the insurance business. It has its roots in the classical theory of risk but introduces many new elements that are important in managing the insurance business but which are usually ignored in the classical theory. These include modelling the stochastic behaviour of inflation and investments, cyclical effects on both claims and premiums, claaim run-off uncertainty and feed-back mechanisms. The main focus of the book is on general insurance (property/casualty insurance) but there are also chapters in life insurance and pensions. Practical tips are given for the use of simulation to solve both short-term and long-term problems, with many practical applications. The text avoids the use of complex or abstruse mathematical formulations and makes liberal use of diagrams and graphical representations.

A Business Week, New York Times Business, and USA Today Bestseller

"Ambitious and readable . . . an engaging introduction to the oddsmakers, whom Bernstein regards as true humanists helping to release mankind from the choke holds of superstition and fatalism." —The New York Times

"An extraordinarily entertaining and informative book." —The Wall Street Journal

"A lively panoramic book . . . Against the Gods sets up an ambitious premise and then delivers on it." —Business Week

"Deserves to be, and surely will be, widely read." —The Economist

"[A] challenging book, one that may change forever the way people think about the world." —Worth

"No one else could have written a book of such central importance with so much charm and excitement." —Robert Heilbroner author, The Worldly Philosophers

"With his wonderful knowledge of the history and current manifestations of risk, Peter Bernstein brings us Against the Gods. Nothing like it will come out of the financial world this year or ever. I speak carefully: no one should miss it." —John Kenneth Galbraith Professor of Economics Emeritus, Harvard University

In this unique exploration of the role of risk in our society, Peter Bernstein argues that the notion of bringing risk under control is one of the central ideas that distinguishes modern times from the distant past. Against the Gods chronicles the remarkable intellectual adventure that liberated humanity from oracles and soothsayers by means of the powerful tools of risk management that are available to us today.

"An extremely readable history of risk." —Barron's

"Fascinating . . . this challenging volume will help you understand the uncertainties that every investor must face." —Money

"A singular achievement." —Times Literary Supplement

"There's a growing market for savants who can render the recondite intelligibly—witness Stephen Jay Gould (natural history), Oliver Sacks (disease), Richard Dawkins (heredity), James Gleick (physics), Paul Krugman (economics)—and Bernstein would mingle well in their company." —The Australian

Title insurance is central to the health of the home mortgage market and the commerical real estate business, and its regulation has a profound impact on the prices that consumers pay for title insurance and the kinds of coverages that are available. Dr. Lipshutz provides a concise but comprehensive overview of the key economic policy issues that arise in regulating this small but critical segment of the insurance industry. This is the first book to examine title insurance from a primarily economic viewpoint and contains much information on the operations of the industry that is available nowhere else. The book is particularly timely because title insurance regulation is currently under intensive study by a number of state insurance departments and by the National Association of Insurance Commissioners.

Risk Analysis in Finance and Insurance, Second Edition presents an accessible yet comprehensive introduction to the main concepts and methods that transform risk management into a quantitative science. Taking into account the interdisciplinary nature of risk analysis, the author discusses many important ideas from mathematics, finance, and actuarial science in a simplified manner. He explores the interconnections among these disciplines and encourages readers toward further study of the subject. This edition continues to study risks associated with financial and insurance contracts, using an approach that estimates the value of future payments based on current financial, insurance, and other information. New to the Second Edition Expanded section on the foundations of probability and stochastic analysis Coverage of new topics, including financial markets with stochastic volatility, risk measures, risk-adjusted performance measures, and equity-linked insurance More worked examples and problems Reorganized and expanded, this updated book illustrates how to use quantitative methods of stochastic analysis in modern financial mathematics. These methods can be naturally extended and applied in actuarial science, thus leading to unified methods of risk analysis and management.

By the eve of the Great Depression, there existed in America the equivalent of a policy for every man, woman and child, and in Britain it grew from its narrow aristocratic base to cover all social classes. This primary resource collection is the first comparative history of British and American life insurance industries.

By the eve of the Great Depression, there existed in America the equivalent of a policy for every man, woman and child, and in Britain it grew from its narrow aristocratic base to cover all social classes. This primary resource collection is the first comparative history of British and American life insurance industries.

Big Data Analytics in the Insurance Market is an industry-specific guide to creating operational effectiveness, managing risk, improving financials, and retaining customers. This book will be a 'must' for people seeking to broaden their knowledge of big data concepts and their real-world applications, particularly in the field of insurance. The insurance industry is largely dependent on data, and the advent of Big Data and analytics represents a major advance with tremendous potential. Yet clear, practical advice on the business side of analytics is lacking. This book fills the void with concrete information on using Big Data in the context of day-to-day insurance operations and strategy. This book an invaluable resource for any insurance professional from practitioners and policymakers working at insurance companies, to undergraduate and graduate students of economics management, and finance. Providing high quality academic research, ESFIRM provides a platform for authors to explore, analyse and discuss current and new financial models and theories, and engage with innovative research on an international scale.

This Palgrave Pivot assesses the impact of the regulatory framework for derivatives built post-crisis and examines its ambition to centralize and minimize credit risk, enhance transparency, and regain control. Zelenko delves into the powerful destabilizing forces exerted by derivatives markets in the global financial meltdown of 2008. Recapping the evolution in markets and counterparty risk management, as well as key aspects of regulation and their impact, this book aims to give readers the big picture and foster a deep understanding of the role of derivatives markets in the financial crisis. This practical angle will give useful keys to end-users and their risk managers, as they are faced with a new, complex, and changing environment. Additionally, this book conducts a comprehensive analysis of the new metrics the market has created to model, price, and manage credit risk, such as the Credit Value Adjustment (CVA), the Debt Value Adjustment (DVA), or the Funding Value Adjustment (FVA), and takes full stock of a domain that is still in rapid evolution. This volume covers the concepts, methods, and approaches taken by banks to manage counterparty credit risk in their derivatives activities in the new post-crisis market and regulatory environment, and it aims to highlight what is practical and effective today.

Across the European Union, common problems and challenges have arisen related to the accessibility, quality, and financial sustainability of long-term healthcare services, which represent a new social and medical risk. This book compares national policies in Norway, Germany, and the Netherlands and how these countries approach issues such as old-age insurance, home-help programs,and mental healthcare. The contributors look at different paths of policy development, identify problems faced by public and private parties, and ultimately discuss possible solutions.

Big data - unstructured and/or structured data being used to influence underwriting, rating, pricing, forms, marketing and claims handling and incentivize risk reduction - is a relatively recent development in the insurance industry, the data sets previously being too impossibly great to analyse through traditional methods. However, with the global capacity to collect and store data growing alongside advancements in AI and machine learning technology, insurers need to seriously evaluate their technology stacks to ensure they can remain competitive and respond to growing customer demand. Striking a balance between the technical characteristics of the subject and the practical aspects of decision making, spanning from fraud analytics in claims management, to customer analytics, to risk analytics in solvency, the comprehensive coverage presented makes Big Data an invaluable resource for any insurance professional. Providing high quality academic research, Emerald Studies in Finance, Insurance, and Risk Management provides a platform for authors to explore, analyse and discuss current and new financial models and theories, and engage with innovative research on an international scale. Subjects of interest may include banking, accounting, auditing, compliance, sustainability, behaviour, management, and business economics.

The life insurance industry was one of the most important financial institutions of the long 19th century, on both sides of the Atlantic. By the eve of the Great Depression, there existed in America the equivalent of a policy for every man, woman and child alive at the time, whilst in Britain the life insurance market grew steadily from its narrow aristocratic base to encompass all social classes at home and throughout the empire. The sources in this edition are collected in three themed volumes.

Reflecting the author's wealth of experience in this field, Handbook of Solvency for Actuaries and Risk Managers: Theory and Practice focuses on the valuation of assets and liabilities, the calculation of capital requirement, and the calculation of the standard formula for the European Solvency II project. The first three sections of the book examine the solvency concept, historical development, and the role of solvency in an enterprise risk management approach. The text provides a general discussion on valuation, investment, and capital, along with modeling and measuring. It also covers dependence, risk measures, capital requirements, subrisks, aggregation, the main risks market, and credit, operational, liquidity, and underwriting risks. The last three sections focus on the European Solvency II project. Basing the material on CEIOPS final advice, the author presents the general ideas, valuation, investments, and funds of this project as well as the standard formula framework. He also includes all calibrations from previous quantitative impact studies and discusses the political progress of the project. A one-stop shop for actuaries and risk managers, this handbook offers a complete overview of solvency and the European Solvency II standard formula. It gives a clear definition and broad historical review of solvency and incorporates a comprehensive discussion of the theory behind the calculation of the capital requirement. Updates on solvency projects and issues are available at www.SolvencyII.nu

Challenges destabilize the norm and create distresses and disruptions in, for example, the culture, the technology, regulations, the environmental, etc. that influence the pace of finance and economic activities. This book is a collection of 13 chapters and studies about Insurance and Risk management in response to disruptions caused by social, economic, and environmental challenges to try and stabilize the economy in an effort to ensure sustainability. Insurance and Risk Management for Disruptions in Social, Economic and Environmental Systems brings together studies from scholars, researchers and professionals with different disciplinary backgrounds to highlight discuss and exchange ideas on these challenges, which may seem a danger, but offer prospects for economic and business development. Books in the Emerald Studies In Finance, Insurance, And Risk Management series collect quantitative and qualitative studies in areas relating to finance, insurance, and risk management. Subjects of interest may include banking, accounting, auditing, compliance, sustainability, behaviour, management, and business economics.

The Savvy Investor’s Pocket Guide is a self-improvement guide that provides ordinary people with the tools to become financially savvy quickly and successfully. Identifying the common mistakes people make when dealing with their finances, the guide sets out how to rectify them. It also highlights how one can achieve financial independence by cutting back on some expenses, like luxury cars, and the benefits of starting to save as early as possible.

The book also explains in easy-to-understand terms how to draw up and stick to a budget; make shrewd investments in various investment vehicles; consolidate and eliminate debt; draw up a will; get the most out of short-term and life insurance; and save enough money to retire.

The Savvy Investor’s Pocket Guide serves as a wake-up call to stop wasting money and start investing for a financially secure future. A must-read for anyone who wants to not only improve their finances, but also their life in general.

The business guide to Big Data in insurance, with practical application insight Big Data and Analytics for Insurers is the industry-specific guide to creating operational effectiveness, managing risk, improving financials, and retaining customers. Written from a non-IT perspective, this book focusses less on the architecture and technical details, instead providing practical guidance on translating analytics into target delivery. The discussion examines implementation, interpretation, and application to show you what Big Data can do for your business, with insights and examples targeted specifically to the insurance industry. From fraud analytics in claims management, to customer analytics, to risk analytics in Solvency 2, comprehensive coverage presented in accessible language makes this guide an invaluable resource for any insurance professional. The insurance industry is heavily dependent on data, and the advent of Big Data and analytics represents a major advance with tremendous potential yet clear, practical advice on the business side of analytics is lacking. This book fills the void with concrete information on using Big Data in the context of day-to-day insurance operations and strategy. * Understand what Big Data is and what it can do * Delve into Big Data's specific impact on the insurance industry * Learn how advanced analytics can revolutionise the industry * Bring Big Data out of IT and into strategy, management, marketing, and more Big Data and analytics is changing business but how? The majority of Big Data guides discuss data collection, database administration, advanced analytics, and the power of Big Data but what do you actually do with it? Big Data and Analytics for Insurers answers your questions in real, everyday business terms, tailored specifically to the insurance industry's unique needs, challenges, and targets.

Climate change brings about a new set of major economic risks arising from changing weather patterns, extreme weather events and rising sea levels. Most at risk are developing countries who, despite considerable post-disaster donor aid, have been bearing the major brunt of disaster-related losses. One adaptation solution that is rapidly gaining the support of countries and international donors is a risk transfer to the global reinsurance and capital markets. This volume, a special issue of the journal Climate Policy, explores the role that insurance-based mechanisms can play in helping developing countries prepare for climate change. It offers a unique and comprehensive perspective on the potential role of insurance solutions in global adaptation to climate change and attempts to engender debate on the role of insurance in reducing global emissions and encouraging climate-friendly corporate behaviour.