|Year of offer||2017|
|Fees||Subject EFTSL, Level, Discipline & Census Date|
Topics include collective risk model, calculation of moments and mgf of aggregate claims, recursion formulae, effect of reinsurance; individual risk model, recursion formulae and approximations; credibility theory, exact credibility and the Buhlmann-Straub model; an introduction to ruin theory.
- Apply relevant pre-requisite knowledge of mathematics, probability theory and statistics in the solution of a range of practical problems;
- Derive and calculate probabilities for, and moments of, loss distributions both with and without simple reinsurance arrangements;
- Construct risk models appropriate for short term insurance contracts and derive both moments and moment generating functions for aggregate claim amounts under these models;
- Derive recursion formulae to calculate aggregate claims distributions for short term insurance contracts;
- Describe and apply approximate methods of calculating an aggregate claims distribution;
- Explain the fundamental concepts of Bayesian statistics and apply these concepts to derive Bayesian estimators;
- Describe and apply the fundamental concepts of credibility theory;
- Explain the concept of ruin for a risk model;
- Explain the significance of the adjustment coefficient in ruin theory.
High level of development: written communication; problem solving; statistical reasoning; application of theory to practice; interpretation and analysis.