Finance Model On Actuary Theory

Actuarial theory is very important in the modern insurance industry. This dissertation is devoted to the study of insurance actuarial theory and its applications. First of all, Review the history of actuarial science and look forward to the tendency of the development. Introduce some key principal in the actuarial science: Interest Theory and Annuity, Survival Function and Life Table, Types of insurance and Premium. The main works obtained here are summarized as follows:Based on the traditional actuary theory, we analyzed the prorated benefit, calculated the pure premium and reserve using random interest for this model. We consider prorated benefit using random interest in this model, so it is close to the real world practice. The prorated benefit is relevant to the time, so there is a reference value for the property insurance of the insurance company.This paper introduces that how the CSFP applies in the condition of valuing the risk of loan combination. We expatiate that how actuarial theory applies in the finance, especially in valuing the risk. Then, we improve CSFP Model in two portions, making it more appropriate in valuing the risk.