ETC5353 · Life insurance mathematics

Overview

This unit covers: valuation of cash flows contingent on death or survival using mortality tables, insurance policies with constant or variable benefit, and with-profits contracts. Also covered are pricing assessments and reserving calculations for various insurance and pension products, involving one or two lives, and subject to multiple competing risks (e.g. withdrawal, sickness). Practical issues such as guarantees and options, as well as the effects of the pricing and reserving basis on the emergence of profit, will also be addressed.

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. calculate, using ultimate or select mortality, net premiums and net premium reserves for increasing and decreasing benefits and annuities
2. develop techniques for the valuation of annuity and assurance products involving two lives, and the use of actuarial functions in that situation
3. develop methods which can be used to model cash flows contingent upon competing risks
4. use the technique of discounted emerging costs as used in profit tests, pricing assessments and reserving calculations for various insurance and pension products
5. address practical issues such as guarantees and options, risk classification and the effects of the pricing and reserving basis on the emergence of profit.

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.