Actuaries: An Overview
Actuaries: An Overview
Jonathan Adams
February 3rd, 2016
What Do Actuaries Do?
-
Combine economics, finance, and statistics (to name a few)
- Ratemaking
- Investing
- Loss Reserving
- Catastrophe Modeling
- Need to be a "jack-of-all-trades."
Ratemaking
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Estimate future losses
- Explore large datasets
- Apply personal knowledge
-
Fit models
- Regression
- Statistical distribution
- Time series
- Prevent insolvency
- Provide a profit
-
Do not overcharge
- Similar to "do no harm"
Investing & Loss Reserving
- Collect premiums at beginning of "year"
-
Money should be invested
- Time value of money
- Rates of return
- Financial products
-
Need to estimate losses
- Loss reserving
- IBNR
- Chain Ladder
- Can span several years
Catastrophe (CAT) Modeling
-
What could happen?
- What is probability of it happening?
- Account for existing correlations and simulate 10,000 years of data
-
Copulas are powerful tool
- Simultaneously account for marginal distributions and correlation structure
- http://freakonometrics.hypotheses.org/17113
How to Prepare
-
Learn to program
- R
- Python
- SQL
- Javascript
- Cloud Computing (AWS/Azure)
-
Learn how to apply statistics
- R-Bloggers.com
- freakonometrics.hypotheses.org
- Computational Actuarial Science with R
-
Pass exams
- BeAnActuary.org
- ActuarialOutpost.com
- Internships
- Problems!
- Problems!!
- Problems!!!
Questions?
Actuaries: An Overview
Jonathan Adams
February 3rd, 2016