Actuarial Mathematics and Statistics
MODULE CODE
CREDIT VALUE
Module Aims
Aim 1
To introduce students to the insurance system and understand different life insurance products and principles in order to apply these principles to solve complex problems related to mathematics of insurance.
Module Content
Economics of insurance: Utility Theory, Insurance and Utility, Elements of Insurance, Optimal Insurance.
Risk Models: Models for individual claim random variable, sums of independent random variable, approximation for the distribution of sum, application to insurance.
Survival Analysis: Survival functions, time until death, curtate future lifetimes, force of mortality, life tables and relation to survival function, deterministic survivorship group, life table characteristics and recursion formulas, fractional age assumptions, other laws of mortality, select and ultimate tables.
Life Insurance: Insurance payable at moment of death (MOD): level benefit, endowment, deferred, varying benefit. Insurance payable at end of year of death (EOY), relationships between MOD and EOY.
Learning Outcomes
On successful completion of this module, a student will be able to:
Teaching Methods
The class contact will consist of teaching classes together with workshops. Teaching classes will introduce new material and provide examples. Tutorials have no new material introduced. Students will attempt problems during the tutorials. Key elements of the learning strategy are regular sessions during which problems are attempted. Throughout the week students will be given a list of problems to attempt.
Assessment Methods
The module is assessed through a Written Exam.
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Compulsory
Optional
