Actuarial-consistency and two-step actuarial valuations: a new paradigm to insurance valuation

From actuarial to financial valuation principles

A valuation principle is a mapping that assigns a number (value) to a random variable (payoff). This paper constructs a transformation on valuation principles by embedding them in a financial environment. Given an a priori valuation rule u, we define the associated a posteriori valuation rule h by an indifference argument: The u-value of optimally investing in the financial market alone should ...

The Actuarial Paradigm: a Nontechnical Exposition

A NONTECENICAL EXPOSITION OVERVIEW In his insightful and groundbreaking essay entitled The Structure of Scientific Revolutions, Thomas S. Kuhn discussed the notion of scientific advancement. In particular, he introduces the idea of a paradigm, a body of knowledge and beliefs which provides direction for research. The development and acceptance of a paradigm is a key factor in transforming a gro...

Actuarial Valuation of Perishable Inventory Systems

ReValuator - An Expert System Approach to Actuarial Valuations

Expert system technology has now matured so that task-oriented business programs can be rapidly prototyped, developed, coded, and deployed on desktop and laptop personal computers. This rapid development and deployment is especially true when the task is well defined, and the target user has little knowledge in the specified domain. This chapter sketches the successful implementation of an actu...

Actuarial versus Nancial Pricing of Insurance 1