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The Net Premium Method of Valuation

Published online by Cambridge University Press:  11 August 2014

P. M. Carroll
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Extract

1.1. The net premium method of valuation has been controversial ever since it was first advocated over a century and a quarter ago. Its merits and deficiencies have exercised the minds of actuaries whose names are legendary in actuarial science—men such as Finlaison, Jellicoe, Sprague, Manly, Bailey, Coutts, Elderton and Redington; it has been tested in practice against almost every kind of experience; and its demise has repeatedly been predicted. Nevertheless, although it has been modified somewhat over time, in principle it remains today firmly entrenched in life office practice. Consideration of it, even in modern times, has divided actuaries in old ways—the artist from the scientist, the theoretician from the practical man.

Type
Research Article
Information
Journal of the Staple Inn Actuarial Society , Volume 21 , Issue 2 , October 1975 , pp. 121 - 138
Copyright
Copyright © Institute of Actuaries Students' Society 1975

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References

REFERENCES

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