Loss Models: From Data to Decisions

by Stuart A. Klugman, Harry H. Panjer, Gordon E. Willmot

An update of one of the most trusted books on constructing and analyzing actuarial models Written by three renowned authorities in the actuarial field, Loss Models , Third Edition upholds the reputation for excellence that has made this book required reading for the Society of Actuaries (SOA) and Casualty Actuarial Society (CAS) qualification examinations. This update serves as a complete presentation of statistical methods for measuring risk and building models to measure loss in real-world events. This book maintains an approach to modeling and forecasting that utilizes tools related to risk theory, loss distributions, and survival models. Random variables, basic distributional quantities, the recursive method, and techniques for classifying and creating distributions are also discussed. Both parametric and non-parametric estimation methods are thoroughly covered along with advice for choosing an appropriate model. Features of the Third Edition The book continues to distinguish itself by providing over 400 exercises that have appeared on previous SOA and CAS examinations. Intriguing examples from the fields of insurance and business are discussed throughout, and all data sets are available on the book's FTP site, along with programs that assist with conducting loss model analysis. Loss Models, Third Edition is an essential resource for students and aspiring actuaries who are preparing to take the SOA and CAS preliminary examinations. It is also a must-have reference for professional actuaries, graduate students in the actuarial field, and anyone who works with loss and risk models in their everyday work. To explore our additional offerings in actuarial exam preparation visit www.wiley.com/go/actuarialexamprep.

Genres: Textbooks, Reference, Mathematics

726 pages, Hardcover

First published January 9, 1998

Reviews

[Denis Kuznetsov · Rating 5 out of 5]

The book is definitely a very good and worthwhile read. It's clear the authors have a great understanding of how all the distributions work and how they're connected.
However, this is definitely not the best choice for those who are unfamiliar with the subject. The book often explains one concept with the assumption that the reader is already quite familiar with several others. What's strange is that later, maybe 200 pages in, it will introduce those underlying concepts from the beginning as if the reader doesn't know them, which contradicts the earlier assumption of their understanding.
So, while it's not an introductory-level book, it's still quite a good one for providing an overall understanding and showing the connections between various subjects. This is also one of the few books where the appendix is definitely worth paying attention to.
What I didn't like was the generally intimidating feeling of the book. Even though the explanations are quite clear, maybe it's an editorial issue.

[Sebestyén Máté Attila · Rating 3 out of 5]

Despite it's awfully chaotic and seemingly random organization (e.g. introducing mathematical statistics only after having spent hundreds of pages with bulding models), completely worthless solutions manual (rarely providing detailed derivations), it is for better or worse still the "best" resource for non-life actuarial mathematics.

[Lisa · Rating 3 out of 5]

I read sections of this book more as an overview to loss models and credit risk analysis. It was informative for what I needed. Unfortunately most is for actuarial models and insurance. I would have liked to have seen more examples and some case studies and a bit less theory.

3.5/5 stars ⭐️

[Yehia · Rating 3 out of 5]

Mid life crisis

[Vonny · Rating 4 out of 5]

systematic and easy to understand ... :D

[Andrew · Rating 4 out of 5]

Pretty readable for an actuarial exam textbook. There are even some funny parts.