BILL ADONGO

BILL ADONGO: UNUSUAL ACTUARY:

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)=Zx_im+(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)=Zx_im+(1-Z)μ.

Adongo, the insurance catalyst of our time realized that substituting the prior formula μ(ө)=Zx_im+(1-Z)μ  for uncertainty is not into perfection and accurate, so he introduced a new formula μ(ө)=αx_im+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. 

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.

Adongo, who is a prominent Actuary  all time, has five main Theories (or Laws) in pure mathematics. These are “Central Point Law”, “Central Prediction theory”; “Point Values Interval Law” and “Multi-combinational Theory”. Even though all his theories (or Laws) are applicable in economics, his “Point Values Interval Law” and the “Central Prediction Theory” is exhaustive application of managerial and behavioral economics of firms for decision making under risk and Uncertainty.

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.