Loss Models: From Data to Decisions, Second Edition

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

Revised, updated, and even more useful to students, teachers, and practicing professionals
The First Edition of Loss Models was deemed "worthy of classical status" by the Journal of the International Statistical Institute. While retaining its predecessor's thorough treatment of the concepts and methods of analyzing contingent events, this powerful Second Edition is updated and expanded to offer even more complete and flexible coverage of risk theory, loss distributions, and survival models.
Beginning with a framework for model building and a description of frequency and severity loss data typically available, it shows readers how to combine frequency, severity, and loss models to build aggregate loss models and credibility-based pricing models, and how to analyze loss over multiple time periods. Important features of this new edition
* Thorough preparation for relevant parts of preliminary examinations of the Society of Actuaries (SOA) and Casualty Actuarial Society (CAS)
* Exercises based on past SOA and CAS exams
* Examples using actual insurance data
* Practical treatment of modern credibility theory
* Data files and more from an ftp site
Loss Models, Second Edition is an important resource, providing a comprehensive, practically motivated toolkit and an excellent reference, for actuaries preparing for SOA and CAS preliminary examinations, students in actuarial science who need to understand loss and risk models, and practicing professionals involved in loss modeling.

Genres: Reference, Mathematics

720 pages, Hardcover

First published January 9, 1998

Reviews

[Denis · 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.

[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.