This is a new edition of a very successful introduction to statistical methods for general insurance practitioners. No prior statistical knowledge is assumed, and the mathematical level required is approximately equivalent to school mathematics. Whilst the book is primarily introductory, the authors discuss some more advanced topics, including simulation, calculation of risk premiums, credibility theory, estimation of outstanding claim provisions and risk theory. All topics are illustrated by examples drawn from general insurance, and references for further reading are given. Solutions to most of the exercises are included. For the new edition the opportunity has been taken to make minor improvements and corrections throughout the text, to rewrite some sections to improve clarity, and to update the examples and references. A new section dealing with estimation has also been added.
• New edition of a very successful textbook. Will appeal to a wide range of potential readers • Numerical examples (drawn from insurance) throughout to demonstrate the practical applications of the theory. Exercise sets for each chapter, for which answers are given at the end of the book • Designed for the reader who is not strong mathematically so minimal mathematical and statistical prerequisites. Some starred sections for more advanced readers
1. Introduction and mathematical preliminaries; 2. Elementary probability; 3. Random variables and their distribution; 4. Location and dispersion; 5. Statistical distributions useful in general insurance work; 6. Inferences from general insurance data; 7. The risk premium; 8. Experience rating; 9. Simulation; 10. Estimation of outstanding claim provisions; 11. Elementary risk theory.