I have decided to dedicate a fraction of my time to “Stochastic Modeling: Theory and Reality from an Actuarial Perspective” book. Even after six years into the profession my shallow perspective tells me that this should be our primary skill set.
As a first step I jumped straight to the section on “Regime Switching Models” to study the RSLN (Regime Switching Log-normal) model. The Actuarial Literature elsewhere tends to be inundated with this model whenever it comes to Stock models. Actuaries seem to be rebels against normal statisticians who would prefer regressive models over probability models.