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Pricing in General Insurance

Book Description

Based on the syllabus of the actuarial industry course on general insurance pricing — with additional material inspired by the author’s own experience as a practitioner and lecturer — Pricing in General Insurance presents pricing as a formalised process that starts with collecting information about a particular policyholder or risk and ends with a commercially informed rate. The main strength of this approach is that it imposes a reasonably linear narrative on the material and allows the reader to see pricing as a story and go back to the big picture at any time, putting things into context.

Written with both the student and the practicing actuary in mind, this pragmatic textbook and professional reference:

  • Complements the standard pricing methods with a description of techniques devised for pricing specific products (e.g., non-proportional reinsurance and property insurance)
  • Discusses methods applied in personal lines when there is a large amount of data and policyholders can be charged depending on many rating factors
  • Addresses related topics such as how to measure uncertainty, incorporate external information, model dependency, and optimize the insurance structure
  • Provides case studies, worked-out examples, exercises inspired by past exam questions, and step-by-step methods for dealing concretely with specific situations

Pricing in General Insurance delivers a practical introduction to all aspects of general insurance pricing, covering data preparation, frequency analysis, severity analysis, Monte Carlo simulation for the calculation of aggregate losses, burning cost analysis, and more.

Table of Contents

  1. Front Cover (1/2)
  2. Front Cover (2/2)
  3. Contents (1/4)
  4. Contents (2/4)
  5. Contents (3/4)
  6. Contents (4/4)
  7. Preface
  8. Acknowledgements
  9. Chapter 1: Pricing Process: A Gentle Start (1/3)
  10. Chapter 1: Pricing Process: A Gentle Start (2/3)
  11. Chapter 1: Pricing Process: A Gentle Start (3/3)
  12. Chapter 2: Insurance and Reinsurance Products (1/5)
  13. Chapter 2: Insurance and Reinsurance Products (2/5)
  14. Chapter 2: Insurance and Reinsurance Products (3/5)
  15. Chapter 2: Insurance and Reinsurance Products (4/5)
  16. Chapter 2: Insurance and Reinsurance Products (5/5)
  17. Chapter 3: The Policy Structure (1/4)
  18. Chapter 3: The Policy Structure (2/4)
  19. Chapter 3: The Policy Structure (3/4)
  20. Chapter 3: The Policy Structure (4/4)
  21. Chapter 4: The Insurance Markets (1/4)
  22. Chapter 4: The Insurance Markets (2/4)
  23. Chapter 4: The Insurance Markets (3/4)
  24. Chapter 4: The Insurance Markets (4/4)
  25. Chapter 5: Pricing in Context (1/4)
  26. Chapter 5: Pricing in Context (2/4)
  27. Chapter 5: Pricing in Context (3/4)
  28. Chapter 5: Pricing in Context (4/4)
  29. Chapter 6: The Scientific Basis for Pricing: Risk Loss Models and the Frequency/Severity Risk Costing Process (1/2)
  30. Chapter 6: The Scientific Basis for Pricing: Risk Loss Models and the Frequency/Severity Risk Costing Process (2/2)
  31. Chapter 7: Familiarise Yourself with the Risk
  32. Chapter 8: Data Requirements for Pricing (1/2)
  33. Chapter 8: Data Requirements for Pricing (2/2)
  34. Chapter 9: Setting the Claims Inflation Assumptions (1/2)
  35. Chapter 9: Setting the Claims Inflation Assumptions (2/2)
  36. Chapter 10: Data Preparation (1/2)
  37. Chapter 10: Data Preparation (2/2)
  38. Chapter 11: Burning Cost Analysis (1/5)
  39. Chapter 11: Burning Cost Analysis (2/5)
  40. Chapter 11: Burning Cost Analysis (3/5)
  41. Chapter 11: Burning Cost Analysis (4/5)
  42. Chapter 11: Burning Cost Analysis (5/5)
  43. Chapter 12: What Is This Thing Called Modelling? (1/2)
  44. Chapter 12: What Is This Thing Called Modelling? (2/2)
  45. Chapter 13: Frequency Modelling: Adjusting for Claim Count IBNR (1/4)
  46. Chapter 13: Frequency Modelling: Adjusting for Claim Count IBNR (2/4)
  47. Chapter 13: Frequency Modelling: Adjusting for Claim Count IBNR (3/4)
  48. Chapter 13: Frequency Modelling: Adjusting for Claim Count IBNR (4/4)
  49. Chapter 14: Frequency Modelling: Selecting and Calibrating a Frequency Model (1/5)
  50. Chapter 14: Frequency Modelling: Selecting and Calibrating a Frequency Model (2/5)
  51. Chapter 14: Frequency Modelling: Selecting and Calibrating a Frequency Model (3/5)
  52. Chapter 14: Frequency Modelling: Selecting and Calibrating a Frequency Model (4/5)
  53. Chapter 14: Frequency Modelling: Selecting and Calibrating a Frequency Model (5/5)
  54. Chapter 15: Severity Modelling: Adjusting for IBNER and Other Factors (1/3)
  55. Chapter 15: Severity Modelling: Adjusting for IBNER and Other Factors (2/3)
  56. Chapter 15: Severity Modelling: Adjusting for IBNER and Other Factors (3/3)
  57. Chapter 16: Severity Modelling: Selecting and Calibrating a Severity Model (1/4)
  58. Chapter 16: Severity Modelling: Selecting and Calibrating a Severity Model (2/4)
  59. Chapter 16: Severity Modelling: Selecting and Calibrating a Severity Model (3/4)
  60. Chapter 16: Severity Modelling: Selecting and Calibrating a Severity Model (4/4)
  61. Chapter 17: Aggregate Loss Modelling (1/6)
  62. Chapter 17: Aggregate Loss Modelling (2/6)
  63. Chapter 17: Aggregate Loss Modelling (3/6)
  64. Chapter 17: Aggregate Loss Modelling (4/6)
  65. Chapter 17: Aggregate Loss Modelling (5/6)
  66. Chapter 17: Aggregate Loss Modelling (6/6)
  67. Chapter 18: Identifying, Measuring and Communicating Uncertainty (1/2)
  68. Chapter 18: Identifying, Measuring and Communicating Uncertainty (2/2)
  69. Chapter 19: From Costing to Pricing (1/7)
  70. Chapter 19: From Costing to Pricing (2/7)
  71. Chapter 19: From Costing to Pricing (3/7)
  72. Chapter 19: From Costing to Pricing (4/7)
  73. Chapter 19: From Costing to Pricing (5/7)
  74. Chapter 19: From Costing to Pricing (6/7)
  75. Chapter 19: From Costing to Pricing (7/7)
  76. Chapter 20: Experience Rating for Non-Proportional Reinsurance (1/4)
  77. Chapter 20: Experience Rating for Non-Proportional Reinsurance (2/4)
  78. Chapter 20: Experience Rating for Non-Proportional Reinsurance (3/4)
  79. Chapter 20: Experience Rating for Non-Proportional Reinsurance (4/4)
  80. Chapter 21: Exposure Rating for Property (1/6)
  81. Chapter 21: Exposure Rating for Property (2/6)
  82. Chapter 21: Exposure Rating for Property (3/6)
  83. Chapter 21: Exposure Rating for Property (4/6)
  84. Chapter 21: Exposure Rating for Property (5/6)
  85. Chapter 21: Exposure Rating for Property (6/6)
  86. Chapter 22: Liability Rating Using Increased Limit Factor Curves (1/3)
  87. Chapter 22: Liability Rating Using Increased Limit Factor Curves (2/3)
  88. Chapter 22: Liability Rating Using Increased Limit Factor Curves (3/3)
  89. Chapter 23: Pricing Considerations for Specific Lines of Business (1/9)
  90. Chapter 23: Pricing Considerations for Specific Lines of Business (2/9)
  91. Chapter 23: Pricing Considerations for Specific Lines of Business (3/9)
  92. Chapter 23: Pricing Considerations for Specific Lines of Business (4/9)
  93. Chapter 23: Pricing Considerations for Specific Lines of Business (5/9)
  94. Chapter 23: Pricing Considerations for Specific Lines of Business (6/9)
  95. Chapter 23: Pricing Considerations for Specific Lines of Business (7/9)
  96. Chapter 23: Pricing Considerations for Specific Lines of Business (8/9)
  97. Chapter 23: Pricing Considerations for Specific Lines of Business (9/9)
  98. Chapter 24: Catastrophe Modelling (1/3)
  99. Chapter 24: Catastrophe Modelling (2/3)
  100. Chapter 24: Catastrophe Modelling (3/3)
  101. Chapter 25: Credibility Theory (1/5)
  102. Chapter 25: Credibility Theory (2/5)
  103. Chapter 25: Credibility Theory (3/5)
  104. Chapter 25: Credibility Theory (4/5)
  105. Chapter 25: Credibility Theory (5/5)
  106. Chapter 26: Rating Factor Selection and Generalised Linear Modelling (1/6)
  107. Chapter 26: Rating Factor Selection and Generalised Linear Modelling (2/6)
  108. Chapter 26: Rating Factor Selection and Generalised Linear Modelling (3/6)
  109. Chapter 26: Rating Factor Selection and Generalised Linear Modelling (4/6)
  110. Chapter 26: Rating Factor Selection and Generalised Linear Modelling (5/6)
  111. Chapter 26: Rating Factor Selection and Generalised Linear Modelling (6/6)
  112. Chapter 27: Multilevel Factors and Smoothing (1/2)
  113. Chapter 27: Multilevel Factors and Smoothing (2/2)
  114. Chapter 28: Pricing Multiple Lines of Business and Risks (1/7)
  115. Chapter 28: Pricing Multiple Lines of Business and Risks (2/7)
  116. Chapter 28: Pricing Multiple Lines of Business and Risks (3/7)
  117. Chapter 28: Pricing Multiple Lines of Business and Risks (4/7)
  118. Chapter 28: Pricing Multiple Lines of Business and Risks (5/7)
  119. Chapter 28: Pricing Multiple Lines of Business and Risks (6/7)
  120. Chapter 28: Pricing Multiple Lines of Business and Risks (7/7)
  121. Chapter 29: Insurance Structure Optimisation (1/3)
  122. Chapter 29: Insurance Structure Optimisation (2/3)
  123. Chapter 29: Insurance Structure Optimisation (3/3)
  124. References
  125. Back Cover