List of Top 12 Best Actuaries Books
Below is the list of the top books on actuaries which you must read if you are thinking of entering into the field of actuaries –
- Actuaries’ Survival Guide: How to Succeed in One of the Most Desirable Professions ( Get this book )
- Achieving Your Pinnacle: A Career Guide for Actuaries ( Get this book )
- Actuarial Mathematics ( Get this book )
- Understanding the Insurance Industry: An overview for those working with and in one of the world’s most interesting and vital industries ( Get this book )
- Practical Risk Theory for Actuaries (Chapman & Hall/CRC Monographs on Statistics & Applied Probability) ( Get this book )
- Actuarial Science: An Elementary Manual ( Get this book )
- Regression Modeling with Actuarial and Financial Applications (International Series on Actuarial Science) ( Get this book )
- Generalized Linear Models for Insurance Data (International Series on Actuarial Science) ( Get this book )
- Life, Death and Money ( Get this book )
- Probability for Risk Management ( Get this book )
- Understanding Actuarial Management ( Get this book )
- Pension Actuarial Mathematics ( Get this book )
Let us discuss each of the actuaries’ books in detail along with its key takeaways and reviews.
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Source: Best Actuaries Books (wallstreetmojo.com)
#1 – Actuaries’ Survival Guide: How to Succeed in One of the Most Desirable Professions
by Fred Szabo
Introduction
If you are looking forward to something which will give you an elementary idea of what actuary is, pick this book up. It will help you understand the basic fundamentals and how to prepare for actuary exams.
Book Review
The best part of this actuaries book is that it’s not based on the author’s own ideas and experiences. The data presented in the book has been tested, and after gathering the data, the book is being written. This book is not applicable to someone who is in actuary for years. But it’s most useful for beginners or people who have no experience whatsoever in working in actuary at all. As this book has gathered data from people who are in the actuary industry for years, it has become the most helpful guide to students who are specializing in actuarial scienceActuarial ScienceActuarial Science evaluates the various risks associated with the field of finance. The use of mathematics and statistics, which is its prime focus, is used to analyze the uncertainty of future events and their financial implications.read more.
Best Takeaway from this Actuaries Book
You would find a lot of useful information within this top actuaries book. But still, the following are the best takeaways –
- This will talk about the Society of Actuaries (SOA) and Casualty Actuarial Society (CAS) examinations in detail, and you would also be able to avail sample questions and answers.
- It will give you a clear outline between theory and practice and would help readers understand how to learn both quantitative and qualitative skills to succeed in actuarial exams.
- It has covered ideas and outlook from more than 50 actuaries and actuarial students which has made this resource the most sought after.
#2 – Achieving Your Pinnacle: A Career Guide for Actuaries
by Tom Miller
Introduction
This top actuaries book is a guide on unlearning things that you have learned wrong about actuaries. Have a look at the review and the best takeaways of the book.
Book Review
This top actuaries book is not a comprehensive book, as you seem to expect. But if you want to get into actuaries or have already passed a few exams, then this book would add immense value to you. Pick up this book to understand how actuaries actually work in the business ends of things. It will not answer all your questions. However, it will act as a go-to-guide for people who don’t have any answers in regards to actuaries.
Best Takeaway from this Actuaries Book
- There is misinformation out there in the actuary world. The author has written this book to bust the myths and give students the best information they require to know.
- This is a career guide that will help students learn how to conduct job searches for actuaries, how to switch from insurance to consulting, and what exactly clients are looking for when they look at the actuarial candidate.
#3 – Actuarial Mathematics
by Newton L. Bowers, Hans U. Gerber, James C. Hickman, Donald A. Jones & Cecil J. Nesbitt
Introduction
This book is a must for any actuarial student. Let’s look at the review and the best takeaways.
Book Review
This book revolves around controversy, and that is about its usefulness in the actuary syllabus. As a matter of fact, every student of CAS or SOA has to go through this material as a part of their curriculum. Thus, they expect that this book serves all their purpose. But the truth is no matter how comprehensive a book might be; it will never be able to answer all your questions. This book is a gem of a book. However, if you want to understand the merit of this book, you need to take time and read slowly. If you have no background in mathematics, it would be difficult for you to understand in some cases. But it’s nicely written and can be considered as an in-depth material on actuarial mathematics.
Best Takeaway from this Best Actuaries Book
- It’s written for people who need to study actuarial mathematics and nothing else. So it would become more relevant to you if you decide to study actuary.
- It is a primer for students who would want to understand the contingencies and mathematical approach actuary. But a little background in maths would definitely help.
#4 – Understanding the Insurance Industry
An overview for those working with and in one of the world’s most interesting and vital industries
by A.M. Best Company
Introduction
If you’re in actuaries, better you learn about the insurance industry. Otherwise, it would be really difficult for you to make your mark in actuary.
Actuaries Book Review
If you’re looking for something that will tell you the key concepts and discuss the terminology in great detail, you need to pick this top actuaries book up. It will not teach you to sell, underwrite, or adjust, but it is all about the insurance industry and how generally it works. Students who are interested in actuaries should read this book to get an idea about how the insurance industry operates in order to get familiar with it.
Best Takeaway from this Book
- You will learn four areas of insurance – property/casualty (non-life insurance), life, health, and reinsuranceReinsuranceReinsurance is a tool used by the insurance companies to reduce their claim liability by getting some of it insured by another company. It helps prevent insurance companies from insolvency. The company insuring the claims is called the ‘Reinsurer’ and the company getting insured is called the ‘Ceding company’.read more. So you will learn quite a lot about the industry.
- You will also learn how the insurance industry operates, generates revenue and gives opportunities to people.
#5 – Practical Risk Theory for Actuaries
(Chapman & Hall/CRC Monographs on Statistics & Applied Probability)
by C.D. Daykin, T. Pentikainen & Martti Pesonen
Introduction
This material covers core topics in actuary. It’s not exactly for getting a overview, but understanding the risk theory in detail.
Actuaries Book Review
This is the ultimate top actuaries book if you want to get your hands on stochastic modeling of the insurance business. If you’re interested in studying the probability distributionProbability DistributionProbability distribution is the calculation that shows the possible outcome of an event with the relative possibility of occurrence or non-occurrence as required. It is a mathematical function that gives results as per the possible events.read more in-depth, pick this book up. The material is divided into two parts. The first part discusses the insurance business in the short term. And the second part depicts the long term of the same. But this book is not for everybody. It’s very advanced, and you need significant knowledge in the domain to understand the value of the book.
Best Takeaway from this Book
- Many books don’t talk about practical theories. This book focuses purely on practical aspects of risk theory.
- You would not only find concepts of risk theories here, but you will also learn about simulation and modeling, which is of utter importance in the world of actuaries.
- This book doesn’t include a lot of math, but it has provided enough diagrams to understand the concepts wholly. And the book has also included new elements of the insurance industry.
#6 – Actuarial Science: An Elementary Manual
by Glen Ninian
Introduction
This best actuaries book can only be appreciated by a chosen few. Why? Look at the review and the best takeaways to know more.
Actuaries Book Review
This book is not new, and we have included this to encourage students to broaden their knowledge base. This book was first published in the year 1923. It is being curated and presented to the students for one and only reason. The book’s importance only revolves around cultural differences. And if you read this book, you would be able to get an overview of how actuarial science has actually evolved over the years. It may not be a must-read, but if you’re an aspirant of an actuary, you should give it a read.
Best Takeaway from this Book
- Very few books have covered the cultural science behind actuaries. Thus, you can’t miss this book.
- Secondly, the best part is this book has survived almost a century. That means you can understand how much value you would get by reading this book.
#7 – Regression Modeling with Actuarial and Financial Applications
(International Series on Actuarial Science)
by Edward W. Frees
Introduction
This best actuaries book is not for everyone. It’s strictly for actuaries and people who want to be in financial analysisFinancial AnalysisFinancial analysis is an analysis of finance-related projects/activities, company's financial statements (balance sheet, income statement, and notes to accounts) or financial ratios to evaluate the company's results, performance, and trends, which is useful for making significant decisions such as investment, project planning and financing activities.read more.
Actuaries Book Review
This is a core guide on the regression modeling basically related to actuaries and financial analysis. This is not for beginners, and to be able to read this book, you need a good foundation on the fundamental concepts. So don’t pick this up if you’re new to actuaries and trying to understand the elementary science because it’s quite advanced than it seems. Models like exponential smoothing, Box-Jenkins are for advanced level candidates.
Best Takeaway from this Best Actuaries Book
- This book claims to be of help to both intermediate and advanced students of actuaries. But few models which are used in the book are specifically for advanced students.
- You will find data sets with detailed descriptions, statistical software scripts in SAS and R. And you will also learn how to write statistical reports.
#8 – Generalized Linear Models for Insurance Data
(International Series on Actuarial Science)
by Piet De Jong & Gillian Z. Heller
Introduction
This is also one of core subjects to be studied in actuaries. Let’s see the review and best takeaways of this best actuaries book.
Book Review
People who have gone through the book mentioned that this is an excellent fundamental book on Generalized Linear Models. If you’re a beginner and you don’t have any idea about statistics, the first few chapters of this book would be very helpful to you in understanding the later part of the book. Thus we can say that this book is for everybody who would like to learn the nitty-gritty of GLM of insurance data. But there is one drawback to this book. This book is not too advanced. It’s for elementary and intermediate students. So students who would seek to acquire advanced knowledge may find it disappointing.
Best Takeaway from this Top Actuaries Book
- Very few books have addressed the issues on GLM of insurance data. This book would be of immense help if you’re new to this topic and want to learn GLM in detail.
- Actuaries should be practical and something students can rely on. This book doesn’t only talk about fundamental concepts; it also includes exercises and data-based practical so that students can learn the trade.
#9 – Life, Death and Money
by Derek Renn
Introduction
This book was published in 1998 to mark the 150th anniversary of the Institute of Actuaries (presently known as the Institute and Faculty of Actuaries) of London. It provides an overview of how actuaries have contributed in the past and how they will be required in the future.
Book Review
If you are someone who is interested in the field of actuary, then this book is definitely for you. It is one of the most interesting books on the actuarial profession and can be a very good companion while travelling via bus or train. It will give you a very honest overview of the history of the actuarial profession in the UK. But the best part of this book is that it has presented the usually “boring” narrative of a profession in a very candid way. The book has contributions from five former presidents of the Institute and Faculty of Actuaries. The insights into the actuarial careerActuarial CareerAn actuary is a professional who predicts risk or future uncertainty using statistics, data, implied mathematics, and past theories. Insurance actuary, Pension actuary, and Environment actuary are the top three actuarial careers.read more in the fields of finance and insurance make it an interesting read for the specialists, but the general audience may find it a little difficult to comprehend.
Key Takeaway
- This book can be helpful for aspiring actuaries as they get to know how the actuarial profession has developed over the years.
- It discusses the different aspects of actuarial science in great detail.
- The covered topics are backed by interesting examples, which can be easily consumed by the brain.
#10 – Probability for Risk Management
by Donald Hassett, Matthew J., and Stewart
Introduction
This book provides an interesting overview of how actuarial theories can be applied to the real world and thus it is best suited for the students of actuarial science, finance, mathematical economics, and risk management.
Book Review
This book is quite different from most intermediate probability books as it focuses on the application of the theories in the general field of insurance, finance, and economics. The actuarial examination questions from the past are provided at the end of each chapter, which will also help you cement your understanding of the corresponding topics. This book is recommended for the course of reading for Exam 1 of the Casualty Actuarial Society (CAS) and Exam P of the Society of Actuaries (SOA). It is also useful for more advanced probability material covered in Exams 3L and 4 of the CAS, Exams MLC and C of the SOA, and EA-1 Exam of the Joint Board for the Enrollment of Actuaries (Joint Board).
Key Takeaway
- It shows how to use probability theories in solving real-world issues.
- The book can be equally useful for both intermediate probability and more advanced probability exams of the CAS, the SOA, and the Joint Board.
- Students from the finance and economics background find it useful in their preparation for the actuarial exams.
#11 – Understanding Actuarial Management
by Philip Martin McCaulay
Introduction
This book covers deliberations from some of the prominent actuaries who shared their two pieces of advice pertaining to the use of actuarial theory in real-world applications.
Book Review
In this book, a number of prominent actuaries have provided their refreshing insights about the application of actuarial theory to real-world issues. It lucidly explains how actuarial science is an amalgamation of skills from statistics, mathematics, finance, and economics, which is then used to foretell future financial outcomes. It also describes the journey of an actuary from traditional life insurance and retirement savings to other products, such as general insurance, health financing, investment management, banking, etc. It also tells you how actuaries manage the uncertainty of future events in dynamic social and economic systems. Hence, this book is a must-read for anyone who is an aspiring actuarial candidate or a currently practising actuarial professional.
Key Takeaway
- The book explains the application of actuarial theories to the field of life insurance, retirement savings, general insurance, health financing, investment management, banking, etc.
- It is an essential read for both students and practising professionals who want to understand how actuarial science is used to forecast future uncertainties.
#12 – Pension Actuarial Mathematics
by Philip Martin McCaulay
![By Philip Martin McCaulay Pension Actuarial Mathematics (1st Frist Edition) [Paperback]](https://m.media-amazon.com/images/I/519j-4kTOLL._SL160_.jpg)
Introduction
As the name suggests, this book covers various topics on pension actuarial mathematics, such as interest & mortality, cost methods, amortization & contributions, and durationDurationDuration is a risk measure used by market participants to measure the interest rate sensitivity of a debt instrument, e.g. a Bond. It tells how sensitive is a bond with respect to the change in interest rates. This measure can be used for comparing the sensitivities of bonds with different maturities. There are three different ways to arrive duration measures, viz. Macaulay Duration, Modified Duration, and Effective Duration.read more & convexityConvexityConvexity of a bond is a measure that shows the relationship between bond price and yield, and it helps risk management tools to measure and manage a portfolio's exposure to interest rate risk and loss of expectation.read more.
Book Review
If you are looking for a book that discusses the key concepts and terminologies of pension actuarial mathematics in great detail, then probably this is the right book for you. The book material is divided into four parts – (a) interest & mortality, (b) cost methods, (c) amortization & contributions, and (d) duration & convexity. These four parts help you understand mortality rates, theory of interest, survival functions, life annuity factors, Unit Credit (UC) Cost Method, Entry Age Normal (EAN) Cost Method, Projected Unit Credit (PUC) Cost Method, etc.
Key Takeaway
- This book is best suited for candidates who intend to develop a deep understanding of pension actuarial mathematics.
- It is a concise (40-page) textbook with a theoretical orientation.
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Thank you for sharing.
Thanks for sharing these books, really amazing and quite informative. Although do have books related to Personal Finance, which would be helpful for future Finance?
go to this Best personal finance books and grab one of them to get well prepared to handle your finances
Thanks for sharing this awesome list of books. Any list of Investment Banking Books then please let me know?
thanks. You can have a look at these top investment banking books here.