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45 ON BECOMING AN ACTUARY OF THE THIRD KIND

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Abstract

The growing importance of investment performance in insurance operutions, the increusing volutility in finnnciul markets und the emergence of investment-linked insurance contructs are creating the need for actuaries to develop new skills and a greater awareness of investment performance. Huns Biihlmann recently classified actuaries that work with the investment side of insurunce as actuaries of the third kind. This paper describes the similarities and differences between actuarial science and financial economics, indicates the current issues in financial economics, and summarizes the mujor applications of fmuncial economics to insurance. 1

Year: 2013
OAI identifier: oai:CiteSeerX.psu:10.1.1.363.1037
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