Offered By: IBM
Modelling and Basic Actuarial Calculation in Insurance
In this guided project you will learn how to build a mathematical model of an insurance company using Risk Process and to do risk and revenue assessment.
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At a Glance
In this guided project you will learn how to build a mathematical model of an insurance company using Risk Process and to do risk and revenue assessment.
You may have heard of "Actuaries" but may not be sure about what they do. According to the USA Bureau of Labor Statistics "Actuaries analyze the financial costs of risk and uncertainty. They use mathematics, statistics, and financial theory to assess the risk of potential events, and they help businesses and clients develop policies that minimize the cost of that risk. Actuaries' work is essential to the insurance industry."
In this guided project you will learn how to build a mathematical model of an insurance company using Risk Process and to do risk and revenue assessment that might be used by an actuaries in the insurance industry.
In this guided project you will learn how to build a mathematical model of an insurance company using Risk Process and to do risk and revenue assessment that might be used by an actuaries in the insurance industry.
Learning Objectives
After completing this guided project you will be able to:
- Build the model of an Insurance Company with Risk Process.
- Understand Classical Risk Process
- Understand basic actuarial approximations and their limitations
- Use Actuarial approximations for Risk Assessment of the Classical Risk Process
- Calculate the Ruin Probability of the Classical Risk Process using Monte Carlo method and compare it to theoretical results
Note: in this project you will build a mathematical Risk Assessment model of an insurance company. This project is not intended to teach you the process of Ratemaking which is fundamental to the role of the actuaries.