302400 (v.2) Actuarial Mathematics 302

Area:

Department of Mathematics and Statistics

Credits:

25.0

Contact Hours:

5.0

Lecture:

3 x 1 Hours Weekly

Tutorial:

1 x 2 Hours Weekly

Prerequisite(s):

302399 (v.2) Actuarial Statistics 301 or any previous version

Syllabus:

Straight forward function involving two lives and selection, main variable benefit, disability and long-term care contracts, net premiums, gross premiums and reserves, discounted emerging costs, asset shares, retrospective reserves, early termination benefits, life insurance contracts, population projections, disability and insurance contracts.

Unit Outcomes:

On successful completion of the unit the student will be able to define and use straightforward functions involving two lives, straightforward functions involving selection, the main variable benefit, disability and long-term care contract types and calculate net premiums and reserves for them. They will be able to describe the types of future expenses and bonus required for pricing and reserving and the influence of inflation on these, the calculation of gross premiums and reserves using the equation of value for fixed benefit and variable benefit contracts, the technique of discounted emerging costs, for use in pricing, reserving, and assessing profitability, for all contract types and for pensions and the technique of asset shares in the context of life insurance. They will be able to calculate the benefits on the early termination of a contract, including transfer, and the premium after a change in the terms of a contract, calculate of the cost of guarantees and options, describe the principal formsof heterogeneity and selection that occurs within a population, the process of population projection, and derive computational tools for determining the value of the benefits under a disability insurance contract.

Text and references listed above are for your information only and current as of September 30, 2003. Please check with the unit coordinator for up-to-date information.

Unit References:

Scott, W. F., (1999), 'Life Assurance Mathematic's, University of Aberdee. Scott, W. F., (2000), 'Mortality Studies', University of Aberdee. '100 Series Subjects suggested additional reading on website www.actuaries.org.uk.

Unit Texts:

Act Ed Study Materials. 2003 Examinations Subject 105 Course Notes, The Actuarial Education Company.

Unit Assessment Breakdown:

Examination 70%. Assignments 30%. This is by grade/mark assessment.

Year	Location	Period	Internal	Area External	Central External
2004	Bentley Campus	Semester 2	Y