Introduction - the Actuarial Science - theory and practice - Characteristics of Actuarial Science, - Actuarial education - Actuarial research - insurance risk –rate making-pricing-credibility-reserving-risk theory-definition of risk- types of risk – risk management – risk control – risk financing – risk financing option for an insurer- financial – applications – examples.
Rate making – concept of rate making- basic terminology – rate making process – trended – projected – ultimate losses – expense provisions – profit and contingencies – expense provisions – overall rate indications – classification rates.
Individual risk rating – introduction – goal of individual risk rating – prospective systems – schedule rating – experience rating- composite rating – retrospective rating – designing an individual risk rating system.
Loss reserving – accounting system – claim department reserving – loss reserve definitions – loss reserving principles – loss reserving process – explanatory data analysis – loss reserve estimation methods – paid loss development – incurred loss development – claim count development – average paid claim projection – allocated loss adjustment expenses – unallocated loss adjustment expenses – evaluation of ultimate loss estimates – monitoring result – an actuarial model of loss development.
Risk classification – introduction relationship to other mechanisms – criteria for selecting – rating variables – examples of classification systems –forces affecting classification systems – measures of efficiency – estimating class relativities.