List of Errata

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Case Study Related

• Hu/SCS: reinsurance is applied on an aggregate basis, not occurrence as stated. It is calibrated using the occurrence loss distribution.
• CCoC/constant ROE natural allocations are incorrect.

All Other

• p. 24-5: line -1 and 1, Cat Hu is extremely skewed... though Cat Hu is thicker
• p. 64 line 2: Is corresponds s/b It corresponds. (JAM)
• p. 64 Figure 4.1 is created with $\sigma=0.5$ not 1 as claimed. (SJM)
• p. 88 algorithm step 6, s/b upper case $X_n$, not lower. (JAM)
• p. 101 Display equation line 3, drop $q(p)$; it is included in the integral. (JAM)
• p. 244, exercise 141 solution part 2 should $h(0.05) = 1-g(1-0.95) = 0.0203$, should say $h(0.05) = 1-g(1-0.05) = 0.0203$.
• p. 273 para above (11.2) s/b outcome-probability not event-outcome; after equation more natural than, not then. (SJ/JM)
• p. 277 Ex 185 item 5, s/b "What conditions on $p_0$, $p_1$, ... ". (JAM)