ETC2430 · Actuarial cash flow modelling

Overview

This unit will introduce you to basic financial and stochastic techniques used in actuarial work, and will give an overview of some of the areas in which actuaries are currently involved. You will be introduced to the basic concepts involved in interest rates and time value of money, leading to assessing and pricing future risks and pricing insurance products, using past data.

Offerings

Assessment

The Handbook lists an examination for this unit.

Assessment details may change. Please refer to the assessment information in Moodle closer to the start of the teaching period.

Requisites

Learning outcomes

1. understand the time value of money and associated concepts of interest, discount and inflation rates
2. calculate present value and discounted value of cash-flow streams at different dates and different frequencies
3. apply the techniques in the valuation of financial transactions with deterministic cash-flows, such as annuities, and for project appraisal
4. develop extensions using life tables for the valuation of basic life insurance policies with stochastic cash-flows.

Workload

Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. You are expected to complete all pre-class activities prior to your scheduled class, and post-class activities should be completed after your scheduled class. Learning activities may include a combination of teacher directed, peer directed and online engagement activities.

Student experience, not official rules. Nothing here changes what the Handbook says.