Gift Guide

Statistical Methods in Insurance and Actuarial Science

Hardcover (Print)
Used and New from Other Sellers
Used and New from Other Sellers
from $65.00
Usually ships in 1-2 business days
(Save 38%)
Other sellers (Hardcover)
  • All (5) from $65.00   
  • New (4) from $65.00   
  • Used (1) from $93.62   


Statistical and Probabilistic Methods in Actuarial Science covers many of the diverse methods in applied probability and statistics for students aspiring to careers in insurance, actuarial science,
and finance. The book builds on students' existing knowledge of probability and statistics by establishing a solid and thorough understanding of these methods. It also emphasizes the wide variety of practical situations in insurance and actuarial science where these techniques may be used.

Although some chapters are linked, several can be studied independently from the others. The first chapter introduces claims reserving via the deterministic chain ladder technique. The next few chapters survey loss distributions, risk models in a fixed period of time, and surplus processes, followed by an examination of credibility theory in which collateral and sample information are brought together to provide reasonable methods of estimation. In the subsequent chapter, experience rating via no claim discount schemes for motor insurance provides an interesting application of
Markov chain methods. The final chapters discuss generalized linear models and decision and game theory.

Developed by an author with many years of teaching experience, this text presents an accessible, sound foundation in both the theory and applications of actuarial science. It encourages students to use the statistical software package R to check examples and solve problems.

Read More Show Less

Editorial Reviews

From the Publisher
This book is meant to serve as a textbook for students seeking careers in insurance, actuarial science, or finance. … The author provides a variety of worked examples in each chapter to illustrate the main ideas, with an emphasis on those of more numerical and practical nature. Although good references for further reading are provided, basic knowledge in probability and statistics is required. This book will also serve as a nice reference for an insurance analyst.
Technometrics, February 2009, Vol. 51, No. 1

… There are not many other books that cover actuarial topics based on statistical methods in so complete a way as this one. … this book is quite adequate as a companion book for anyone in involved with the mathematical concepts of statistics and probability models in actuarial science, and it is essential in a university library where these topics are taught.
Journal of Applied Statistics, 2007

This book is aimed both at students of actuarial science and related subjects and at insurance and actuarial practitioners. … The treatment is clear throughout, with an ample supply of problems and worked examples. The book would be useful both for teachers of actuarial science and for self-study.
—N.H. Bingham, Imperial College, International Statistical Review, 2007

… The book has grown out of lecture notes and gives an overview on mathematical techniques used in actuarial practice. The main focus of the book is general insurance (property and casualty insurance, nonlife insurance). Besides theory, the book gives many exercises and presents R code.
—Mario V. Wüthrich, ETH Zurich, The American Statistician, November 2008

This is a very nice book.
—Tonglin Zhang, Mathematical Reviews, 2009a

Read More Show Less

Product Details

Table of Contents

Claims Reserving and Pricing with Run-Off Triangles
The Evolving Nature of Claims and Reserves
Chain Ladder Methods
The Average Cost per Claim Method
The Bornhuetter-Ferguson or Loss Ratio Method
An Example in Pricing Products
Statistical Modeling and the Separation Technique
Loss Distributions
Introduction to Loss Distributions
Classical Loss Distributions
Fitting Loss Distributions
Mixture Distributions
Loss Distributions and Reinsurance
Risk Theory
Risk Models for Aggregate Claims
Collective Risk Models
Individual Risk Models for S
Premiums and Reserves for Aggregate Claims
Reinsurance for Aggregate Claims
Ruin Theory
The Probability of Ruin in a Surplus Process
Surplus and Aggregate Claims Processes
Probability of Ruin and the Adjustment Coefficient
Reinsurance and the Probability of Ruin
Credibility Theory
Introduction to Credibility Estimates
Classical Credibility Theory
The Bayesian Approach to Credibility Theory
Greatest Accuracy Credibility Theory
Empirical Bayes Approach to Credibility Theory
No Claim Discounting in Motor Insurance
Introduction to No Claim Discount Schemes
Transition in a No Claim Discount System
Propensity to Make a Claim in NCD Schemes
Reducing Heterogeneity with NCD Schemes
Generalized Linear Models
Introduction to Linear and Generalized Linear Models
Multiple Linear Regression and the Normal Model
The Structure of Generalized Linear Models
Model Selection and Deviance
Decision and Game Theory
Game Theory
Decision making and Risk
Utility and Expected Monetary Gain
Appendix A: Basic Probability Distributions

Appendix B: Some Basic Tools in Probability and Statistics
Moment Generating Functions
Convolutions of Random Variables
Conditional Probability and Distributions
Maximum Likelihood Estimation
Appendix C: An Introduction to Bayesian Statistics
Bayesian Statistics
Appendix D: Answers to Selected Problems
Claims Reserving and Pricing with Run-Off Triangles
Loss Distributions
Risk Theory
Ruin Theory
Credibility Theory
No Claim Discounting in Motor Insurance
Generalized Linear Models
Decision and Game Theory

Read More Show Less

Customer Reviews

Be the first to write a review
( 0 )
Rating Distribution

5 Star


4 Star


3 Star


2 Star


1 Star


Your Rating:

Your Name: Create a Pen Name or

Barnes & Review Rules

Our reader reviews allow you to share your comments on titles you liked, or didn't, with others. By submitting an online review, you are representing to Barnes & that all information contained in your review is original and accurate in all respects, and that the submission of such content by you and the posting of such content by Barnes & does not and will not violate the rights of any third party. Please follow the rules below to help ensure that your review can be posted.

Reviews by Our Customers Under the Age of 13

We highly value and respect everyone's opinion concerning the titles we offer. However, we cannot allow persons under the age of 13 to have accounts at or to post customer reviews. Please see our Terms of Use for more details.

What to exclude from your review:

Please do not write about reviews, commentary, or information posted on the product page. If you see any errors in the information on the product page, please send us an email.

Reviews should not contain any of the following:

  • - HTML tags, profanity, obscenities, vulgarities, or comments that defame anyone
  • - Time-sensitive information such as tour dates, signings, lectures, etc.
  • - Single-word reviews. Other people will read your review to discover why you liked or didn't like the title. Be descriptive.
  • - Comments focusing on the author or that may ruin the ending for others
  • - Phone numbers, addresses, URLs
  • - Pricing and availability information or alternative ordering information
  • - Advertisements or commercial solicitation


  • - By submitting a review, you grant to Barnes & and its sublicensees the royalty-free, perpetual, irrevocable right and license to use the review in accordance with the Barnes & Terms of Use.
  • - Barnes & reserves the right not to post any review -- particularly those that do not follow the terms and conditions of these Rules. Barnes & also reserves the right to remove any review at any time without notice.
  • - See Terms of Use for other conditions and disclaimers.
Search for Products You'd Like to Recommend

Recommend other products that relate to your review. Just search for them below and share!

Create a Pen Name

Your Pen Name is your unique identity on It will appear on the reviews you write and other website activities. Your Pen Name cannot be edited, changed or deleted once submitted.

Your Pen Name can be any combination of alphanumeric characters (plus - and _), and must be at least two characters long.

Continue Anonymously

    If you find inappropriate content, please report it to Barnes & Noble
    Why is this product inappropriate?
    Comments (optional)