Actuarial Mathematics for Life Contingent Risks Book Summary - Actuarial Mathematics for Life Contingent Risks Book explained in key points

Actuarial Mathematics for Life Contingent Risks summary

David C. M. Dickson

Brief summary

Actuarial Mathematics for Life Contingent Risks provides a comprehensive introduction to the mathematical and statistical techniques used in actuarial science. It covers topics such as survival models, life tables, and premium calculations.

Give Feedback
Topics
Table of Contents

    Actuarial Mathematics for Life Contingent Risks
    Summary of key ideas

    Understanding Life Contingent Risks

    In Actuarial Mathematics for Life Contingent Risks, David C. M. Dickson introduces us to the world of actuarial science, focusing on the mathematics behind life contingent risks. The book begins by discussing the basic concepts of survival models, life tables, and life insurance. It then delves into the more complex aspects of the field, such as multiple life functions, joint life functions, and life annuities.

    One of the central themes of the book is the idea of contingent events, those whose occurrence is dependent on the survival or death of individuals. Dickson provides a comprehensive exploration of these events, including the calculation of contingent probabilities, expected present values, and reserves for such risks.

    Multiple State Models and Premium Calculation

    As we move further into the book, Dickson introduces us to multiple state models, which allow us to examine various states of being, such as alive, disabled, or dead. He explains how these models can be used to calculate probabilities of transitioning between different states, as well as to determine the financial implications of these transitions.

    The concept of premium calculation is another key area covered in the book. Dickson walks us through the process of setting premiums for life insurance and annuity products, emphasizing the importance of accounting for the time value of money and the various risks associated with the policies.

    Managing Financial Risks and Investment Models

    Next, the book shifts its focus to managing financial risks. Dickson discusses the role of reinsurance in transferring risk from one insurance company to another, and the importance of diversification in managing investment risks. He also introduces the concept of risk measures, such as value at risk and conditional tail expectation, as tools for quantifying and managing risk.

    Furthermore, Actuarial Mathematics for Life Contingent Risks explores investment models, including the classical model of investment, the arbitrage-free pricing theory, and the Black-Scholes-Merton model. Dickson explains how these models can be used to determine fair prices for financial derivatives and to manage investment portfolios.

    Dynamic Financial Analysis and Emerging Trends

    In the latter part of the book, Dickson introduces dynamic financial analysis (DFA), a tool for evaluating the financial risks faced by insurance companies over time. He explains how DFA integrates the various risks, such as underwriting risk, investment risk, and operational risk, into a single framework for comprehensive risk management.

    To conclude, Actuarial Mathematics for Life Contingent Risks touches on some emerging trends in actuarial science, such as the use of big data and predictive analytics. It emphasizes the need for actuaries to adapt to these changes and to continue developing their mathematical and statistical skills to effectively manage the evolving risks in the insurance industry.

    Give Feedback
    How do we create content on this page?
    More knowledge in less time
    Read or listen
    Read or listen
    Get the key ideas from nonfiction bestsellers in minutes, not hours.
    Find your next read
    Find your next read
    Get book lists curated by experts and personalized recommendations.
    Shortcasts
    Shortcasts New
    We’ve teamed up with podcast creators to bring you key insights from podcasts.

    What is Actuarial Mathematics for Life Contingent Risks about?

    Actuarial Mathematics for Life Contingent Risks provides a comprehensive introduction to the mathematical concepts and techniques used in the field of actuarial science. Written by David C. M. Dickson, this book covers topics such as survival models, life tables, and premium calculations, making it an essential resource for students and professionals in the insurance and finance industries.

    Actuarial Mathematics for Life Contingent Risks Review

    Actuarial Mathematics for Life Contingent Risks by David C. M. Dickson (2013) is a comprehensive guide exploring the complexities of life contingent risks in actuarial mathematics. Here's why this book stands out:
    • Its detailed explanations and practical examples make complex concepts accessible and easy to understand.
    • The book delves into real-world applications, providing insights into how these mathematical principles are utilized in insurance and finance.
    • By blending theory with practical scenarios, this book keeps readers engaged and highlights the relevance of actuarial mathematics in decision-making processes.

    Who should read Actuarial Mathematics for Life Contingent Risks?

    • Actuarial students and professionals seeking a comprehensive understanding of life contingent risks

    • Individuals interested in the mathematical and financial aspects of life insurance and annuities

    • Those looking to enhance their knowledge of actuarial science and its practical applications in the insurance industry

    About the Author

    David C. M. Dickson is a renowned actuary and academic. With a career spanning over four decades, Dickson has made significant contributions to the field of actuarial science. He has authored several influential books, including Actuarial Mathematics for Life Contingent Risks. Through his work, Dickson has helped to shape the education and understanding of life insurance and pension mathematics. His expertise and dedication have earned him a distinguished reputation within the actuarial community.

    Categories with Actuarial Mathematics for Life Contingent Risks

    People ❤️ Blinkist 
    Sven O.

    It's highly addictive to get core insights on personally relevant topics without repetition or triviality. Added to that the apps ability to suggest kindred interests opens up a foundation of knowledge.

    Thi Viet Quynh N.

    Great app. Good selection of book summaries you can read or listen to while commuting. Instead of scrolling through your social media news feed, this is a much better way to spend your spare time in my opinion.

    Jonathan A.

    Life changing. The concept of being able to grasp a book's main point in such a short time truly opens multiple opportunities to grow every area of your life at a faster rate.

    Renee D.

    Great app. Addicting. Perfect for wait times, morning coffee, evening before bed. Extremely well written, thorough, easy to use.

    4.7 Stars
    Average ratings on iOS and Google Play
    36 Million
    Downloads on all platforms
    10+ years
    Experience igniting personal growth
    Powerful ideas from top nonfiction

    Try Blinkist to get the key ideas from 7,500+ bestselling nonfiction titles and podcasts. Listen or read in just 15 minutes.

    Get started

    Actuarial Mathematics for Life Contingent Risks FAQs 

    What is the main message of Actuarial Mathematics for Life Contingent Risks?

    The main message of Actuarial Mathematics for Life Contingent Risks is understanding risks in life insurance and pensions.

    How long does it take to read Actuarial Mathematics for Life Contingent Risks?

    Reading Actuarial Mathematics for Life Contingent Risks takes a few hours, while the Blinkist summary is a quick read.

    Is Actuarial Mathematics for Life Contingent Risks a good book? Is it worth reading?

    Actuarial Mathematics for Life Contingent Risks is worth reading for insights into managing life insurance and pension risks.

    Who is the author of Actuarial Mathematics for Life Contingent Risks?

    The author of Actuarial Mathematics for Life Contingent Risks is David C. M. Dickson.

    What to read after Actuarial Mathematics for Life Contingent Risks?

    If you're wondering what to read next after Actuarial Mathematics for Life Contingent Risks, here are some recommendations we suggest:
    • Basic Economics by Thomas Sowell
    • The Ascent of Money by Niall Ferguson
    • Think and Grow Rich by Napoleon Hill
    • The 4-Hour Workweek by Tim Ferriss
    • Rich Dad, Poor Dad by Robert T. Kiyosaki
    • Secrets of the Millionaire Mind by T. Harv Eker
    • The Richest Man in Babylon by George S. Clason
    • Business Adventures by John Brooks
    • The Most Important Thing by Howard Marks
    • More Money Than God by Sebastian Mallaby