Improve your Actuarial knowledge with these recommended books.

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Insurance for Dummies

Great book. Suitable to gain a basic understanding of insurance. The vast subject of sharing risk.

It explains everything from getting the most coverage at the best price and dealing with adjusters, to filing claims, to managing risk and reducing liability. The book has a US focus therefore in some parts mainly relevant to the US.

Find it on Amazon here!

Auditing for Dummies

Want to become an auditor?We really like the whole for-dummies-series. This one is no exception. It covers the basics of auditing.

Content: It covers for instance; planning an audit, audit risk, independence, audit procedures, internal controls, sampling, collecting evidence, issuing a report and many other well-known topics within the audit universe.

Level: No previous knowledge required. Suitable for students or auditors in the beginning of their career. The book is easily understood and everyone can learn something from this one. Some references is made on the US regulation but most concepts are universal. Great book for all of you who want to improve your understanding of auditing.

Author: Marie Loughran, 360 pages.

Find your copy at Amazon.

IFRS for Dummies

This is also a great book. Easy to read and fun. At least as fun as possible with respect to the subject. IFRS is the International Financial Reporting Standards.

Content: IFRS For Dummies is your complete introduction to IFRS and international accounting and balancing standards. It covers for instance concepts, key components, disclosure, assets, liabilities, revenue, equity, consolidation and related party transactions. 

Combining all the facts needed to understand this subject with useful examples, this guide will have you on top of IFRS in no time.

– It covers what to do if you′re applying IFRS for the first time
– Helps you make sense of this principles–based set of standards that establish broad rules for financial reporting.

If you′re an accountant, student, or trainee in need of accessible information on IFRS, this hands–on, friendly guide has you covered.

Level: No previous knowledge required. The book is easily understood and everyone can learn something from this one. Great book for anyone who wants to learn more about IFRS.

Author: Steve Collings, 384 pages.

Find it here.

Excel VBA Programming for Dummies

Another good one! 

Take your data analysis and Excel programming skills to new heights

In order to take Excel to the next level, you need to understand and implement Visual Basic for Applications (VBA). This 4th edition introduces you to a wide array of new Excel options, beginning with the most important tools and operations for the Visual Basic Editor. Inside, you’ll get the lowdown on the essential elements and concepts for programming with Excel, discover techniques for handling errors and exterminating bugs, working with range objects, controlling program flow, and much more.

Find it here on Amazon!

Actuarial Science - EAA


by Ohlsson, Esbjörn/ Johansson, Björn

Setting the price of a non-life insurance policy involves the statistical analysis of insurance data, taking into consideration various properties of the insured object and the policy holder. Introduced by British actuaries, generalized linear models (GLMs) have by now become a standard approach used for pricing in many countries. The book focuses on methods based on GLMs that have been found useful in actuarial practice. Basic theory of GLMs in an insurance setting is presented, with useful extensions that are not in common use. The book can be used in actuarial education designed to meet the European Core Syllabus and is written for actuarial students as well as practicing actuaries. To support the readers, it contains case studies using real data of some complexity that are available online.

More info here.

by Michael Radtke, Klaus D. Schmidt, Anja Schnaus

  • Examines and compares a wide range of methods of loss reserving
  • Provides the underlying stochastic models used in loss reserving
  • Presents solutions to problems occurring in actuarial practices

This handbook presents the basic aspects of actuarial loss reserving. Besides the traditional methods, it also includes a description of more recent ones and a discussion of certain problems occurring in actuarial practice, like inflation, scarce data, large claims, slow loss development, the use of market statistics, the need for simulation techniques and the task of calculating best estimates and ranges of future losses.
In property and casualty insurance the provisions for payment obligations from losses that have occurred but have not yet been settled usually constitute the largest item on the liabilities side of an insurer’s balance sheet. For this reason, the determination and evaluation of these loss reserves is of considerable economic importance for every property and casualty insurer. 
Actuarial students, academics as well as practicing actuaries will benefit from this overview of the most important actuarial methods of loss reserving by developing an understanding of the underlying stochastic models and how to practically solve some problems which may occur in actuarial practice.

Find it here.

by Ermanno Pitacco

  • Provides a self-contained and easy-to-read introduction to health insurance techniques
  • Presents the essential aspects of pricing and reserving for sickness insurance and income protection insurance products
  • Will be useful for students (undergraduate and graduate), professionals and technicians

Health Insurance aims at filling a gap in actuarial literature, attempting to solve the frequent misunderstanding in regards to both the purpose and the contents of health insurance products (and ‘protection products’, more generally) on the one hand, and the relevant actuarial structures on the other.
In order to cover the basic principles regarding health insurance techniques, the first few chapters in this book are mainly devoted to the need for health insurance and a description of insurance products in this area (sickness insurance, accident insurance, critical illness covers, income protection, long-term care insurance, health-related benefits as riders to life insurance policies). An introduction to general actuarial and risk-management issues follows.
Basic actuarial models are presented for sickness insurance and income protection (i.e. disability annuities). Several numerical examples help the reader understand the main features of pricing and reserving in the health insurance area. A short introduction to actuarial models for long-term care insurance products is also provided.
Advanced undergraduate and graduate students in actuarial sciences; graduate students in economics, business and finance; and professionals and technicians operating in insurance and pension areas will find this book of benefit.

Find it here.

Actuarial Science - EAA


by Annamaria Olivieri, Ermanno Pitacco

  • Focuses on quantitative phases of the risk management process, in particular risk assessment
  • Deals with a wide range of topics in life insurance, non-life insurance and pensions
  • Emphasizes practical issues
  • Offers an application-oriented approach

This second edition expands the first chapters, which focus on the approach to risk management issues discussed in the first edition, to offer readers a better understanding of the risk management process and the relevant quantitative phases. In the following chapters the book examines life insurance, non-life insurance and pension plans, presenting the technical and financial aspects of risk transfers and insurance without the use of complex mathematical tools. The book is written in a comprehensible style making it easily accessible to advanced undergraduate and graduate students in Economics, Business and Finance, as well as undergraduate students in Mathematics who intend starting on an actuarial qualification path. With the systematic inclusion of practical topics, professionals will find this text useful when working in insurance and pension related areas, where investments, risk analysis and financial reporting play a major role.

by Mario V. Wüthrich

  • Introduces and explains market-consistent actuarial valuation, a key tool for solvency analysis
  • Explores the basis of modern solvency analysis in insurance
  • Examines solvency questions for applied examples in life and non-life insurance
  • Includes updates on regulatory changes under Solvency II

This is the third edition of this well-received textbook, presenting powerful methods for measuring insurance liabilities and assets in a consistent way, with detailed mathematical frameworks that lead to market-consistent values for liabilities.

Topics covered are stochastic discounting with deflators, valuation portfolio in life and non-life insurance, probability distortions, asset and liability management, financial risks, insurance technical risks, and solvency. Including updates on recent developments and regulatory changes under Solvency II, this new edition of Market-Consistent Actuarial Valuation also elaborates on different risk measures, providing a revised definition of solvency based on industry practice, and presents an adapted valuation framework which takes a dynamic view of non-life insurance reserving risk.

by Jean-Paul Laurent,  Ragnar Norberg, Frédéric Planchet

  • Explores a broad range of aspects of modelling in modern life insurance
  • Provides views and objectives of the top management of insurance companies
  • Examines modelling activities within the context of consumer needs, the public interest and business objectives

Focusing on life insurance and pensions, this book addresses various aspects of modelling in modern insurance: insurance liabilities; asset-liability management; securitization, hedging, and investment strategies. With contributions from internationally renowned academics in actuarial science, finance, and management science and key people in major life insurance and reinsurance companies, there is expert coverage of a wide range of topics, for example: models in life insurance and their roles in decision making; an account of the contemporary history of insurance and life insurance mathematics; choice, calibration, and evaluation of models; documentation and quality checks of data; new insurance regulations and accounting rules; cash flow projection models; economic scenario generators; model uncertainty and model risk; model-based decision-making at line management level; models and behaviour of stakeholders.
With author profiles ranging from highly specialized model builders to decision makers at chief executive level, this book should prove a useful resource to students and academics of actuarial science as well as practitioners.

Actuarial Science - EAA


by Griselda Deelstra, Guillaume Plantin

  • Provides a concise introduction to risk theory and its application procedures to reinsurance
  • Applies the formalism of risk theory to the institutional framework of reinsurances
  • Useful for both academics and practitioners wishing to revive their knowledge of risk theory or to quickly learn about the main mechanisms of reinsurance

Reinsurance is an important production factor of non-life insurance. The efficiency and the capacity of the reinsurance market directly regulate those of insurance markets. The purpose of this book is to provide a concise introduction to risk theory, as well as to its main application procedures to reinsurance.

The first part of the book covers risk theory. It presents the most prevalent model of ruin theory, as well as a discussion on insurance premium calculation principles and the mathematical tools that enable portfolios to be ordered according to their risk levels.

The second part describes the institutional context of reinsurance. It first strives to clarify the legal nature of reinsurance transactions. It describes the structure of the reinsurance market and then the different legal and technical features of reinsurance contracts, known as reinsurance ‘treaties’ by practitioners.

The third part creates a link between the theories presented in the first part and the practice described in the second one. Indeed, it sets out, mostly through examples, some methods for pricing and optimizing reinsurance. The authors aim is to apply the formalism presented in the first part to the institutional framework given in the second part.

Risk Theory and Reinsurance is mainly aimed at master’s students in actuarial science but will also be useful for practitioners wishing to revive their knowledge of risk theory or to quickly learn about the main mechanisms of reinsurance.

by Francesca Biagini, Andreas Richter, Harris Schlesinger (Eds.)

  • Illustrates the interplay between modern advances in both risk measures and risk attitudes
  • Multi-disciplinary coverage appeals to students, researchers and practitioners

Risk has been described in the past by a simple measure, such as the variance, and risk attitude is often considered simply a degree of risk aversion. However, this viewpoint is usually not sufficient. Risk Measures and Attitudes collects contributions which illustrate how modern approaches to both risk measures and risk attitudes are inevitably intertwined. The settings under which this is discussed include portfolio choice, mitigating credit risk and comparing risky alternatives.

This book will be a useful study aid for practitioners, students and researchers of actuarial science and risk management.

by Eva Lütkebohmert

Modeling and management of credit risk are the main topics within banks and other lending institutions. Historical experience shows that, in particular, concentration of risk in credit portfolios has been one of the major causes of bank distress. Therefore, concentration risk is highly relevant to anyone who wants to go beyond the very basic portfolio credit risk models.

The book gives an introduction to credit risk modeling with the aim to measure concentration risks in credit portfolios. Taking the basic principles of credit risk in general as a starting point, several industry models are studied. These allow banks to compute a probability distribution of credit losses at the portfolio level. Besides these industry models the Internal Ratings Based model, on which Basel II is based, is treated.

On the basis of these models various methods for the quantification of name and sector concentration risk and the treatment of default contagion are discussed. The book reflects current research in these areas from both an academic and a supervisory perspective.

This book is highly recommended for practitioners in banks, insurance and lending industry, and researchers in quantitative finance.

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