Sixteen years have elapsed since the first edition of this book appeared, and over that time considerable advances have taken place theoretically and analytically in respect of insurance modelling. The arrival of the personal computer, the availability of huge amounts of relatively inexpensive computer memory and the vast increase in processor speed mean that more and more complex models are now readily implemented in the quiet of a user's own office. The fundamentals of insurance, however, remain unchanged, and it is with these this introductory book is primarily concerned. For this reason, whilst there are numerous changes in this new edition, none could be described as major.

It is with great sadness that we record the death of our friend and colleague Ian Hossack, who was involved in preliminary discussions about the changes required for this second edition. We hope that the changes we have made would accord with his wishes.

Several friends and colleagues helped in the necessary revision, and we would particularly like to thank Julian Leslie and Bon Clarke of Macquarie University, who made suggestions about the updating of many of the references.