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Foundations of Casualty Actuarial Science
professional educations. Actuaries usually study as they
work, learning from experience. The actuarial science
encompasses mathematics, statistics, economics,
finance, modeling, underwriting, ratemaking, reserving,
accounting, law, investments, taxes, valuations, financial
engineering, and other fields.
The actuarial syllabus is geared to the actual actuarial
practice. The value of the education is measured by its
ability to enhance the skills of practicing actuaries. But
this is not mere on-job training, or routine company work.
The actuarial study being a specialized one, demands a
high level of intelligence, expertise and skill. Only the
experts can join this profession and contribute to the
development of new techniques to solve the business
problems of insurance industry.
4) What is credibility theory? Explain.
Ans. Credibility theory is the adaptation of theoretical statistics
to a variety of daily business problems. It illustrates the
actuarial perspective. Credibility theory is one of the
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