Life Insurance Models I (ACTL90006)

Graduate courseworkPoints: 12.5On Campus (Parkville)

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Overview

Availability
Semester 1
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Topics include survival models concepts; estimation procedures for lifetime distributions; multiple state models; multiple decrements; binomial and Poisson model of mortality; actuarial applications of continuous‐time and discrete‐time Markov processes; exact and census methods for estimating transition intensities based on age.

Intended learning outcomes

On successful completion of this subject a student should be able to:



  • Explain the concept of survival models;
  • Describe estimation procedures for lifetime distributions;
  • Define a discrete‐time Markov chain and discuss its actuarial applications.
  • Define a continuous‐time Markov process, and apply Markov models in actuarial problems.
  • Describe models of transfer between multiple states, including processes with single or multiple decrements, and derive relationships between probabilities of transfer and transition intensities.
  • Derive maximum likelihood estimators for the transition intensities in models of transfers between states with piecewise constant transition intensities.
  • Describe the binomial model of mortality, a maximum likelihood estimator for the probability of death and compare the binomial model with the multiple state models. 
  • Describe how to estimate transition intensities depending on age, exactly or using the census approximation.

Generic skills

High level of development:

  • Written communication;
  • Problem solving;
  • Statistical reasoning;
  • Application of theory to practice;
  • Use of computer software

Last updated: 4 March 2025

Eligibility and requirements

Prerequisites

Admission into one of the following: MC-ACTSC Master of Actuarial Science, MC-ACTSCEN Master of Actuarial Science (Enhanced)

OR

All of

Code Name Teaching period Credit Points
MAST20004 Probability
Semester 1 (On Campus - Parkville)
Semester 2 (On Campus - Parkville)
 12.5
MAST20005 Statistics
Semester 2 (On Campus - Parkville)
Summer Term (On Campus - Parkville)
 12.5

OR

Equivalent

Corequisites

None

Non-allowed subjects

None

Recommended background knowledge

Students should be competent in the use of Excel.

Inherent requirements (core participation requirements)

The University of Melbourne is committed to providing students with reasonable adjustments to assessment and participation under the Disability Standards for Education (2005), and the Assessment and Results Policy (MPF1326). Students are expected to meet the core participation requirements for their course. These can be viewed under Entry and Participation Requirements for the course outlines in the Handbook.

Further details on how to seek academic adjustments can be found on the Student Equity and Disability Support website: http://services.unimelb.edu.au/student-equity/home

Last updated: 4 March 2025

Assessment

DescriptionTimingPercentage

Assignment 1

  • 1000 words
Week 610%

Mid-semester exam

  • 1 hours
From Week 7 to Week 810%

Assignment 2

  • 1000 words
Week 1210%

End-of-semester exam

  • 2 hours
Hurdle requirement: Students must pass the final exam to pass the subject.		During the examination period70%

Last updated: 4 March 2025

Dates & times

  • Semester 1
    Principal coordinatorShuanming Li
    Mode of deliveryOn Campus (Parkville)
    Contact hours2 x 1 hour recorded lectures and 1 hour live online tutorial.
    Total time commitment170 hours
    Teaching period 3 March 2025 to 1 June 2025
    Last self-enrol date14 March 2025
    Census date31 March 2025
    Last date to withdraw without fail 9 May 2025
    Assessment period ends27 June 2025

    Semester 1 contact information

    shli@unimelb.edu.au

Time commitment details

Estimated total time commitment of 170 hours per semester.

What do these dates mean

Visit this webpage to find out about these key dates, including how they impact on:

  • Your tuition fees, academic transcript and statements.
  • And for Commonwealth Supported students, your:
       -  Student Learning Entitlement. This applies to all students enrolled in a Commonwealth Supported Place (CSP).
     

    Subjects withdrawn after the census date (including up to the ‘last day to withdraw without fail’) count toward the Student Learning Entitlement.

Last updated: 4 March 2025

Further information

  • Texts

    Prescribed texts

    You will be advised of prescribed texts by your lecturer.

  • Related Handbook entries

    This subject contributes to the following:

    TypeName
    CourseGraduate Diploma in Actuarial Science
  • Available through the Community Access Program

    About the Community Access Program (CAP)

    This subject is available through the Community Access Program (also called Single Subject Studies) which allows you to enrol in single subjects offered by the University of Melbourne, without the commitment required to complete a whole degree.

    Please note Single Subject Studies via Community Access Program is not available to student visa holders or applicants

    Entry requirements including prerequisites may apply. Please refer to the CAP applications page for further information.

  • Available to Study Abroad and/or Study Exchange Students

    This subject is available to students studying at the University from eligible overseas institutions on exchange and study abroad. Students are required to satisfy any listed requirements, such as pre- and co-requisites, for enrolment in the subject.

Last updated: 4 March 2025