The aims of this paper are twofold:
(a) To act as a guide to the basic mathematics and methods of simulation which might be useful to actuaries.
(b) To describe how simulation techniques might be used by actuaries, to promote a discussion about whether the suggested approaches are worth pursuing and to encourage people to suggest other possible actuarial uses for simulation.
Section 2 of the paper outlines the general methodology of simulation and serves as a guide to those appendices of the paper where some technical details are given.
Section 3 of the paper considers various actuarial problems and discusses how simulation methods might be applied to them. We have not worked on all the problems described in this section ourselves. The intention is partly to suggest problems that could be tackled by simulation and to consider whether this approach is worthwhile.