Actuarial science is an interdisciplinary science comprising four subjects—mathematics, statistics, economics and finance. Statistics plays a key role in laying the foundation of actuarial calculations taking into account the uncertainty in the mortality pattern of society and under varying economic conditions.
In the first edition of the book, we introduced some basic concepts related to computation of premiums and reserves for some standard life insurance products adopting a rigorous mathematical approach underlying the theoretical concepts. These were supported by numerical computations with R software. In this revised second edition of the book, the theoretical development has not been changed much. However, the role of R software has been extended. In each chapter, computational exercises based on R software are included to provide a hands-on experience to students. Another novel feature of this edition is the inclusion of over 160 multiple choice questions for which answers are provided.
The main aim of this textbook is to provide a thorough treatment of basic techniques, theoretically and computationally using R, so that it will be suitable for self-study, particularly in the present era of online education.
Shailaja Deshmukh is a visiting faculty at the Department of Statistics, Savitribai Phule Pune University (SPPU, formerly known as the University of Pune). She was earlier Professor of Statistics and Head of the Department of Statistics, SPPU. She worked as a visiting professor at the Department of Statistics, University of Michigan, Ann Arbor, Michigan, during 2009–10. She has taught around twenty-five different theoretical and applied courses. Her areas of interest are inference in stochastic processes, applied probability, actuarial statistics and micro array data analysis. She has several research publications in various Sci/Scopus listed journals. She has served as executive editor and chief editor of the Journal of the Indian Statistical Association and is an elected member of the International Statistical Institute. She has published six books.
Vidyagouri Prayag worked as Reader in Statistics in Modern College, Pune and has extensive experience in teaching Statistics, Statistical Ecology, Actuarial Statistics and Computer Programming to undergraduate and postgraduate students. After working in academics, she moved to Cytel Statistical Software and Services where she gained experience in the development of Statistical Software in the Clinical Trials domain. She worked as Subject Matter Expert, Quality Assurance Manager and Technical Writer in Cytel for more than a decade. She has offered statistical consultancy to researchers and NGOs. She has to her credit several research papers in the area of Statistical Ecology, Nutrition and Linguistics, and authored undergraduate and post graduate textbooks.
Preface to Second Edition Preface to First Edition List of Figures
List of Tables 1 Insurance Business 2 Introduction to Statistics and R Software 3 Feasibility of Insurance Business 4 Future Lifetime Distribution and Life Tables 5 Actuarial Present Value of Benefit 6 Annuities 7 Premiums 8 Reserves 9 Multiple Life Contracts Answers to Conceptual Exercises
Bibliography Index