Prerequisites
Probability distributions, estimation, discounting and basic insurance contracts.
What to study
Study frequency/severity models, survival and hazard functions, claim development and cash-flow timing. Keep process uncertainty separate from uncertainty about fitted parameters.
A project to complete
Build a small frequency/severity loss simulation. Document the assumptions, compare simulated and analytical moments where possible, then examine sensitivity to tail and dependency assumptions.
A useful deliverable
Publish the problem definition, documented data, assumptions, reproducible code, a simple comparison and a short discussion of failure cases. Label demonstrations and provisional findings clearly.
Continue reading
Use the first supporting lesson, the next practical topic, and the source reading lists. The repository map shows where earlier material is held.