Life events such as death, accidents and natural disasters are uncertain. The cornerstone of actuarial science is to measure the financial implications of uncertain events. The uncertainty is known as “risk”. Regardless of whether it is a favourable or not, an event with 99% chance of occurring has more risk than an event with 100% chance of occurring. Risk implies uncertainty and vice-versa. Every actuarial calculation is fundamentally made up of probabilities and their respective financial cost should they occur. Interestingly, since events cannot be predicted with 100% certainty, every actuarial result itself is incorrect due to differences between expected and actual experience. The aim of an actuarial calculation is to provide a result that falls within a reasonable range of accurate results.
I am able to provide tutoring services in the following courses:
Mathematics of Investment & Credit
SOA Exams (P, FM, IFM, LTAM, STAM)