Stochastic Modeling: Theory and Reality from an Actuarial Perspective

By Milliman, Inc. · International Actuarial Association · 2010 · CP312-101-25

A guide for practitioners that presents the mathematical and statistical framework necessary to develop stochastic models in any setting, insurance or otherwise, without requiring advanced mathematics or statistics. It covers techniques such as Monte Carlo simulation and lattice models, risk metrics such as Value at Risk and Conditional Tail Expectation, stochastic scenario generation for key risk factors, model calibration and validation, model review and communication of results, and case studies of life and non-life insurance companies. The monograph is sponsored by the International Actuarial Association; its author team is Milliman, Inc.

On the syllabus

Exam CP-312 — CP312-101-25: sections I.A, I.B-1.B.3.a, I.B.4 and III for outcomes 1a and 1d (Topic 1); sections I.A, I.B-B.2, I.B.3.a and II.B-B.1.d for outcomes 2a and 2c (Topic 2).

Contents unavailable The book is sold by the IAA as an e-book and no table of contents was found, so its section headings could not be read. This page records its description and citation and its assignment from the syllabus.

Sources

Stochastic Modeling E-book (International Actuarial Association) — the publisher's description used for the lead, the sponsor and author team, and the e-book ISBN 978-0-9813968-2-8
International Actuarial Association, Stochastic Modeling: Theory and Reality from an Actuarial Perspective, 2010, 418pp. (Annals of Actuarial Science review record) — the year (2010) and page count; the book review (Valdez, 2011, users.math.msu.edu) describes four major sections (methodologies, applications, evaluating and communicating results, case studies) without giving their headings
CP 312 Syllabus, Nov 2026/Mar 2027 (SOA) — the citation as SOA study note CP312-101-25 and the sections assigned for each learning outcome