|Fees||Look up fees|
This subject introduces various insurance and annuity products, teaches fundamental knowledge of actuarial pricing and reserving, and discusses techniques used for projecting and valuing insurance and annuity cashflows which are contingent on the status of single or multiple lives.
Intended learning outcomes
On successful completion of this subject, students should be able to:
- Demonstrate understanding of various insurance and annuity contracts and develop formulae for the means and variances of the present values of the payments under these contracts, assuming deterministic interest rate.
- Formulate insurance and annuity functions involving two lives.
- Employ methods of projecting and valuing cash-flows that are contingent on multiple transition events and multiple decrements events.
- Examine the gross random future loss and evaluate gross premiums and reserves of insurance and annuity contracts.
- Evaluate death strain at risk, expected death strain, actual death strain, and mortality profit for a single or a portfolio of insurance and annuity policy policies.
- Project expected future cash-flows and perform profit testing for various insurance policies.
- Establish non-unit reserves to eliminate (“zeroise”) future negative cash-flows for unit-linked contracts.
High level of development: written communication; problem solving; statistical reasoning; application of theory to practice; interpretation and analysis; synthesis of data and other information; evaluation of data and other information; use of computer software.
Last updated: 11 December 2019