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Risk Theory I (ACTL40002)
HonoursPoints: 12.5On Campus (Parkville)
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Overview
Year of offer  2019 

Subject level  Honours 
Subject code  ACTL40002 
Campus  Parkville 
Availability  Semester 1 
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 BuhlmannStraub model; an introduction to ruin theory.
Intended learning outcomes
 Apply relevant prerequisite 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.
Generic skills

High level of development: written communication; problem solving; statistical reasoning; application of theory to practice; interpretation and analysis.
Last updated: 3 April 2019