Pricing Insurance Risk Book
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About
Pricing Insurance Risk (PIR), written with John Major, describes the last mile of underwriting. Actuaries and accountants have determined the cost of goods sold: the expected loss cost, direct and allocated expenses. In fact they have gone beyond simple point estimates and have provided a full range of potential outcomes, understood within the context of all the other risks written by the company. All that remains is to set a manual rate or quote a price or to accept or reject an offered market price (firm order). The book describes the actuarial, risk theory, finance and accounting approaches to pricing insurance risk.
PIR was published in 2022 and was recently add to the syllabus for the Casualty Actuarial Society’s CAS Exam 9
Reviews
Richard Goldfarb
Richard Goldfarb’s review in the CAS Actuarial Review.
Pricing Insurance Risk is thoroughly researched and brings together the insights from hundreds of published papers in a unified, well-organized and mathematically rigorous manner. But what makes this work such an important contribution to the literature and to actuarial practice is the insightful commentary and the integration of the case studies into the text, which allows the authors to demonstrate realistic implementation of the concepts, methods and algorithms presented.
To make the material accessible to [practitioners and actuarial students], two important pedagogical elements are included. First, they have incorporated more than 300 technical remarks, examples and exercises, and many of the exercises include fully worked out solutions. Second, they have included specific learning objectives for each chapter.
Jan Dhaene
Jan Dhaene’s review in the European Actuarial Journal.
Pricing insurance risk is a topic of great concern mainly to actuaries, but the book is definitely relevant for a broader audience, including risk managers and other professionals working on modelling, valuating and/or pricing non-hedgeable risk.
the book proves to be a great source of reference for practitioners, as well as a comprehensive study material providing a solid theoretical foundation.
The actuarial community is fortunate to have Stephen J. Mildenhall and John A. Major write this significant book for the actuarial profession. Both authors deserve praise and congratulations for this remarkable book!
Errata, Questions, and Comments
If you discover a mistake, or have other questions or comments please email me at mynl@me.com.
Please note the old email address, admin@pricinginsurancerisk.com no longer works. The pricinginsurancerisk.com website, including a list of errta has transitioned to the posts linked here.