Credibility theory is a common concept in property and casualty insurance, but until recently has not been a common part of life and annuity valuation work. That appears to be changing, with recent explicit reference to credibility theory in the American Academy of Actuaries' Variable Annuity Working Group report on C-3 Phase 2, as well as in ASOP 25. Participate in this session to get an introduction to the theoretical basis for credibility theory and examples of related models that could be used in practical applications, including assumption selection for actuarial forecast or valuation models and rate setting for health or group portfolios.

At the end of this session, you'll have an increased understanding of various credibility theory models and ideas for how to apply them.