Fundamental Actuarial Mathematics

Introduction

This wikibook is written for preparing the SOA Exam FAM. Before reading this book, you should have the knowledge of probability and financial mathematics, which are covered in the SOA Exam P and FM respectively, since those concepts are used in this book frequently. You may see Probability and Financial Math FM for learning more about probability and financial mathematics respectively.

There are two main parts in the exam FAM, namely short-term and long-term actuarial mathematics, and so this book will be divided into a short-term part and a long-term part as well.

Table of contents

Short-term

1. Insurance and Reinsurance Coverages
2. Severity, Frequency, and Aggregate Models
3. Parametric and Non-Parametric Estimation (short-term)
4. Introduction to Credibility
5. Pricing and Reserving for Short-Term Insurance Coverages
6. Option Pricing Fundamentals

Long-term

1. Insurance Coverages and Retirement Financial Security Programs
2. Mortality Models
3. Parametric and Non-Parametric Estimation (long-term)
4. Present Value Random Variables for Long-Term Insurance Coverages
5. Premium and Policy Value Calculation for Long-Term Insurance Coverages

Bibliography

1. Bowers, N.L., Gerber, H.U., Hickman, J.C., Jones, D.A. and Nesbitt, C.J. (1997). Actuarial Mathematics (2nd ed.). The Society of Actuaries. ISBN 9780938959465.{{cite book}}: CS1 maint: uses authors parameter (link)
2. Dickson, C.M.D., Hardy, M.R., and Waters, H.R. (2020). Actuarial Mathematics for Life Contingent Risks (3rd ed.). Cambridge University Press. ISBN 9781107044074.{{cite book}}: CS1 maint: uses authors parameter (link)