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

INVESTMENT

The Widening Scope of Actuarial Theory and Practice

Investments and Valuation

General Principles of Asset Allocation

Investment Risk

Portfolio Selection Techniques and Investment Modeling

LIFE INSURANCE

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

GENERAL INSURANCE

Introduction to General Insurance

General Insurance Accounts

Premium Rating

Reinsurance

Reserving

PENSIONS

Types of Pension Plan

Actuarial Modeling of Defined-Benefit Plans

Investment Strategies for Defined-Benefit Plans

Individual Pension Choices

HEALTH INSURANCE

An Introduction to Health Insurance

Income Protection Insurance

Critical Illness

Long-Term Care

Private Medical Insurance