Under Stochastic Interest Rates The Net Premium And Net Premium Liability Reserves

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:1. Net Premium and Net Premium Reserves in the Random Interest ModelIn the classical actuarial theory the interest is fixed, but it has the random character. Therefore, random interest model is established using Brown Motion. The net premium and net premium reserves are obtained by this model. Meanwhile, dynamic risk which insurers face is analyzed. Finally an example illustrates it.2. The Calculating of Premium in practiceWe ignore some problems in practice when we calculate the net premium and net premium reserves using the random interest model. An insurance model explains the way of calculating premium in practice.