BILL ADONGO AS AN INSURANCE CATALYST:
Who is an insurance catalyst of this time of
ours? They are so many names to be mention but the key catalyst of modern
insurance is BILL ADONGO, he is
perhaps the greatest Actuary of all
time.
Insurance is a method of coping with risk. Its primary function is to substitute CERTAINTY for UNCERTAINTY as regards the economic cost of loss-producing events. For the past up to now, people depend on the formula μ(ө)=Zxim+(1-Z)μ, for a substitute for uncertainty as long as credibility rating is concerned. The Casualty Actuarial Society and Society of Actuaries joint-professional exams (course-four) is mainly based on the formula μ(ө)=Zxim+(1-Z)μ.
BILL ADONGO, the insurance catalyst of our time realized that substituting the prior formula μ(ө)=Zxim+(1-Z)μ for uncertainty is not into perfection and accurate, so he introduced a new formula μ(ө)=αxim+βμ for modern credibility estimation, making him the greatest thinker of all time. This formula is the heart of his classical model, called CENTRAL CREDIBILITY MODEL. He has succeeded substituting CERTAINTY for UNCERTAINTY as regards the economic cost of loss-producing events.
We all heard of MERIT RATING SYSTEM which is the greatest accuracy method for setting insurance RATES and PREMIUMS and most intelligent Actuaries preferred this method. BILL ADONGO as an insurance catalyst of our time saw the limitation of the merit rating system by advancing a new system of rating called CENTRAL RATING that is more accurate and appealing than the prior.
Life insurance premiums are based chiefly on statistical tables called mortality tables. These tables state the number of people of a given age who are expected to die during a year. BILL ADONGO, a chief inventor of the MINIMUM UNCERTAINTY METHOD which is for constructing mortality tables is the most perfect method and all mortality tables constructed through this method are always certain and considered better than the prior methods of constructing mortality tables. Premiums making in life insurance are based on his method.
