An examination of the actuarial structure of disability insurance, long-term care insurance, and critical illness coverage, including problems encountered in the design and development of such insurances. Actuarial problems such as pricing and reserving are considered within the context of multiple state modelling, providing a vigorous framework for analyzing personal insurance. The work offers an international perspective, discussing calculation methods used in various countries and reinterpreting them through the framework of multiple state modelling.

Mortality improvements, uncertainty in future mortality trends and the relevant impact on life annuities and pension plans constitute important topics in the field of actuarial mathematics and life insurance techniques. In particular, actuarial calculations concerning pensions, life annuities and other living benefits (provided, for example, by long-term care insurance products and whole life sickness covers) are based on survival probabilities which necessarily extend over a long time horizon. In order to avoid underestimation of the related liabilities, the insurance company (or the pension...