Course co-ordinator(s): Prof Angus Macdonald (Edinburgh).
Aims:
To introduce students to the actuarial techniques available to manage financial guarantees arising in life insurance companies in the course of their business operations.
Detailed Information
Course Description: Link to Official Course Descriptor.
Pre-requisite course(s): F70LA Life Insurance Mathematics A & F70LB Life Insurance Mathematics B .
Location: Edinburgh.
Semester: 2.
Learning Outcomes: Subject Mastery
At the end of studying this course, students should be able to:
- describe the asset types held by life companies and discuss their suitability to back different types of contract
- calculate the value of an insurer’s liabilities using both net and gross premium prospective valuations
- calculate the surplus arising on a portfolio of insurance contracts
- calculate non-profit premiums using the traditional method and the risk discount rate method
- discuss the ownership of surplus and the different types of bonus system which can be used to return surplus on with profits contracts
- calculate asset shares and describe their uses
- discuss how an actuary determines an appropriate level of reversionary and terminal bonuses for with profits contracts
- describe how unitised with-profits contracts work
- perform a simple analysis of surplus
- discuss the concept of solvency for a life insurance company and describe mechanical and model-based solvency margins
- calculate the fair value of life insurance liabilities
- discuss the concept of mismatching reserves
- discuss capital requirements for life insurance companies
- compare and contrast the lognormal and Wilkie models of equity returns
- carry out a simple asset/liability investigation of a life insurance company
Assessment Methods: Due to covid, assessment methods for Academic Year 2021/22 may vary from those noted on the official course descriptor. Please see:
- Maths (F1) Course Weightings 2021/22
- Computer Science (F2) Course Weightings 2021/22
- AMS (F7) Course Weightings 2021/22
SCQF Level: 10.
Other Information
Help: If you have any problems or questions regarding the course, you are encouraged to contact the course leader.
Canvas: further information and course materials are available on Canvas