The book “Risk Theory in Non-life Insurances” is authored by Dr. Amir Teymour Payandeh Najafabadi and published by IRC. The book attempts not only to instruct about various aspects of the risk theory, it also provides exercises for the reader to get involved in using such concepts in practice, according to PRIAO, IRC.
The present book comprises of 9 chapters. The first chapter attempts to introduce the concepts and prerequisites that are needed for understanding other chapters. In the second chapter, the theory of utility, widely used in developing and examining an insurance system is presented. The general principles of pricing in the classical approach are illustrated in the third chapter. The chapter also introduces the secondary tools that are used in choosing an appropriate pricing method.
Chapter four addresses credibility in pricing and presents meticulously the leading notions in this approach. Chapter five deals with the development, assessment, and comparison of reinsurance products. Auto insurances are generally offered in the form of bonus-malus systems and their development, assessment, and comparison are presented in chapter six. Risk measurements and at-risk value computation approaches and their relevant tests are provided in chapter seven.
The likelihood of bankruptcy in short- and long-term, along with their precise and approximate calculation is presented in chapter eight. Chapter nine addresses the predictions related to deferred loss reserves using stochastic and absolute approaches. Finally, in a relatively extensive appendix, the know-how of using R software and some actuary toolkits are offered.
Those interested can purchase the book from IRC’s bookshop at 34, West Sarv St., SaadatAbad, Iran or call 0098-21-22066063 – 141.