Blog posts

Actuarial model in the cloud

Welcome to the first post in our new series, "Cloud computing". In this series, we'll delve into the world of cloud computing and explore how it can be effectively utilized for actuarial purposes. In this post, our focus will be on running a cash flow model and saving the results in the cloud.

List of content:

  1. Introduction
  2. Prerequisities
  3. Solution


Cloud computing delivers IT resources, such as servers, computing power, networking, and databases, over the internet on an "on-demand" basis. Leading cloud infrastructure providers include Amazon Web Services (AWS), Microsoft Azure and Google Cloud. For this guide, we'll use AWS …

Multiple life functions

In this blog post, we explore the topic of multiple life functions within actuarial science. Up until now, our focus has been on insurance products that revolved around the life of an individual. However, in this exploration, we direct our focus to insurance products that involve multiple insured persons. We'll begin by exploring the various types of such products and then roll up our sleeves to construct a basic model using Python, leveraging the cashflower package.

List of content:

  1. Multiple life functions
  2. The joint-life status
  3. The last-survivor status
  4. Modelling example

Multiple life functions

Expanding upon the concept of life insurance …

Actuarial optimization

In the world of actuarial science, we frequently encounter optimization problems. These challenges are most prevalent in the realm of pricing, where our goal is often to achieve a specific objective, such as expected profit. In this post, we will dive into a simple actuarial optimization problem and demonstrate how to solve it using two tools: Excel's Solver and Python.

List of content:

  1. Scenario
  2. Excel's Solver solution
  3. Python solution


Let's consider a 3-year term policy with a net premium of €100. We aim to find a profit margin that yields a present value of premiums equal to €3000, assuming …

Net premium reserves

In this post, we will shed light on what net premium reserves are, how to calculate them and even build a simple actuarial cash flow model to determine their value.

List of content:

  1. The concept behind net premium reserves
  2. Formulas for Net Premium Reserves
  3. Modelling

The concept behind net premium reserves

In a previous blog post, we discussed the concept of net premiums. We mentioned the use of the equivalent principle to derive the value of net premiums paid periodically. What was the equivalent principle all about?

To put it simply, when an insurance contract …

Net premiums

In this blog post, we're going to talk about net premiums in insurance. We'll explain what they are, how to calculate them, and even walk you through some practical exercises using Python with real-life examples.

While we touched upon the concept of net single premiums in a previous discussion about life insurance, real-life scenarios often involve monthly premium payments for life insurance policies.

List of content:

  1. Net vs gross premiums
  2. The equivalence principle
  3. Premium formulas
  4. Modelling

Net vs gross premiums

Before delving further into the world of net premiums, let's revisit the distinction between net …