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(http://bbcjourn.blogspot.com http://inventorbill.blogspot.com ).
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.
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 Ratesand Premiums and most intelligent Actuaries preferred this method. 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 System 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. 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.
Insurance
and Pension funds are the higher shareholders than the wealthiest individual in
Ghana. The Insurance and Pension funds nature the capital economic power that
link with Actuarial Practical. In Actuarial practices, the regression Model has
less admiration in producing profit and loss model. Adongo in his
practical wisdom never fail proving his true potential under test when matching
others with reasoning to reasoning, practical to practical, rich idea to rich
idea, originality to originality and verbal hypothesis to verbal hypothesis. Just
as Credibility Model result from regression line his Central Credibility is also result from
his Central Prediction lines and
developed further for estimating several risk premiums at less
difficulty. Proving himself under test, he gave close reference of prior data from 2009-2013 supplementary benefit of a family in the department of social securities for estimating couple, couple+child, couple+2children, couple+3children, couple+4chilren and couple+5children.
difficulty. Proving himself under test, he gave close reference of prior data from 2009-2013 supplementary benefit of a family in the department of social securities for estimating couple, couple+child, couple+2children, couple+3children, couple+4chilren and couple+5children.
He is the
first African to introduce a method of developing mortality tables that is
worthy and merit than the Commissioners Standard Ordinary (CSO) Mortality Tables
format that has no legalized methods. He actually gains an independent for most
Actuaries in the world based on his Methods. That is to say, all Actuaries can now develop their own
life tables for premiums and rates making.
The popularity
of do-it-yourself accounting has
taken place in the actuarial and Managerial firms. “Actuaries want to be
accountants but not accountants “in his popular sayings have prompt him to lay
the foundation of modern Accounting practices.
His foundation has profound influence in all aspect of accountings.
Those who know economics and mathematics can
understand the condition for consumer equilibrium, easily with
the Adongo “Central Point Law” and “Point Values Interval Law”
which seek to solve the maximization problems subject to some constraints.
Those who understand mathematics and economics should also not forget that his “Point
Values Interval Law”, “Central Point Law” and “Central
Prediction
theory” have already increased the Value of demand estimation where statistical
technique is needed to estimate demand for a product.
We cannot just talk about optimum input combination
without his Central Point Law and Point Values Interval Law. These two
Laws have changed Iso-cost line. His
Point
Values Interval Law is also used in linear programming for
predicting feasible solutions after constraints. His Central
Point Law and Point Values Interval Law is the
Increasing Value of managerial and behavioral economics in these days
of ours. Adongo who is the sole
owner of these theories (or Laws) said, he did not prevent people from stealing
but when stealing, they should steal wisely.
He said, he did not develop his theories (or laws) and
models from people who are living but from those who died Century ago and he
acknowledge them. He said his concern is not money. If it is money, he would
have been changing cars every month without a single theory or model.
He said, people do not understand the meaning of originality. Originality
does not come from original language, and terms but the reasoning behind and
the empirical
construction of that reasoning, (that
is the mathematical part of it).
In Ghana, when ‘sigma’, and ‘alpha’ and ‘ is’ are in your theory or model, is not
new. They will say that theory or model exists. He said, some literates
in Ghana still need more education.
