Topics include distributions of accumulations and present values; stochastic interest rate models; time series models; an introduction to ruin theory; claim run-off triangles; stochastic simulation.
Intended learning outcomes
Intended Learning Outcomes
Critically review simple stochastic models for investment returns.
Compose and assess techniques for analysing a delay (or run-off) triangle and projecting the ultimate position.
Elucidate the concept of ruin and commentate on the significance of the adjustment coefficient in ruin theory.
Contextualise the main aspects of risk and insurance using utility theory.
Compose and transform financial models in spreadsheet software.
Compose pre-requisite mathematical and statistical concepts to solve problems related to the above topics.