Lecture on February the 23rd

Last time we finished chapter 3 where we have discussed interest rates and how they are modeled in finance and insurance.

Next time we will start our discussion of the main topic of this course namely Reserves. Chapter 4 starts with the concepts of cash flows, mathematical and prospective reserves and ends by introducing the most important equation for explicit calculations of the reserves i.e Thiele's difference equation.

I have uploaded the solution to all of the problems in Exercises 1 including the numerical part of Problem 4. In addition I have uploaded the lecture notes for the first three chapters and the R-code used last time for fitting the Generalized Gompertz-Makeham model.