**Reading Source:** https://www.actuaries.org.uk/system/files/documents/pdf/sm20100510.pdf

**Topics Covered in this Reading:**

- Correlation as the Simplest Type of Dependency
- Dependency Structures
- What do we mean by Dependency?
- Pearson Correlation Coefficient
- Spearman Coefficient
- Kendall Tau Correlation
- Numerical Example

- Risk Aggregation
- Risk Aggregation Framework
- Risk Aggregation Methodologies
- Simple Summation
- Fixed Diversification Percentage
- Variance-Covariance Matrix
- Copulas
- Causal Modelling
- Natural Catastrophe vs Reinsurance Credit Risk Aggregation