Building robust actuarial models in R for the SOA and CAS exams can seem daunting at first, but with the right approach and tools, it becomes a manageable and even enjoyable process. Whether you’re new to R or looking to sharpen your modeling skills, this guide will walk you through the essentials of creating strong actuarial models step-by-step, sharing practical tips and examples along the way.
First, why R? It’s a free, open-source language with a rich ecosystem tailored to statistical analysis and actuarial science. More importantly, it’s widely used in the actuarial profession, making it a valuable skill for your exams and future work. R’s powerful packages can help you implement everything from survival models to generalized linear models (GLMs), which are central to pricing and reserving tasks in actuarial work.