F70LB - Life Insurance Mathematics B
Course leader(s):
Aims
To introduce some more advanced topics in life insurance mathematics, and complete the material covered in subject CM1.
Syllabus
1. Revision and policy values and reserves
2. Life Insurance and Differential Equations
3. Markov models
4. Joint lives
5. Income Protection Insurance, Long-Term Care and Duration Dependence
6. Profit testing
7. Unit-linked policies
8. Selection
9. Single-figure indices
10. Introduction to pensions
Learning outcomes
By the end of the course, students should be able to do the following:
- calculate premiums and reserves for life insurance policies using the principle of equivalence and gross premium policy values, using either analytical methods (where possible) or Euler schemes.
- apply a selection of actuarial calculation tools for joint life contingencies such as assurance factors and annuities to actuarial problems such as pricing and reserving
- apply Markov and semi-Markov models to actuarial calculations such as joint lives annuities or income protection insurance. (A detailed knowledge of the underlying theory is not expected.)
- analyse sources of heterogeneity in mortality and other decrements, its effect on the analysis of insurance data, and its possible impact on insurance business;
- analyse single figure indices that summarise mortality and other experience, comparing the strengths and weakness of each index
- apply emerging cashflow techniques to actuarial problems, in particular profit-testing and unit-linked products.
- explain the main features of defined-benefit and defined -contribution pension schemes.
- explain the meaning and purpose of the course concepts , definitions and calculations in the context of life insurance
Further details
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SCQF Level: 10
Credits: 15
