F71AC - Life Contingencies

Course leader(s):

Maria del Carmen Boado Penas (Edinburgh, September)

Aims

To provide a grounding in the principles of mathematical modelling as applied to actuarial work, focusing in particular on cashflows that are dependent on death or survival.

Syllabus

1. Introduction to relevant products (1.1 Overview of products in life insurance, pensions and/or general insurance.)

2. Survival models and force of mortality (2.1 Define survival models and introduce key concepts such as force of mortality)

3. Life tables (3.1 UDD/CFM, underwriting and select periods)

4. Life Insurance (4.1 Actuarial life contingent calculations for life insurance)

5. Life Annuities (5.1 Actuarial life contingent calculations for life insurance, 5.2 Relationships between life annuities and life insurance)

6. Principle of equivalence and setting premiums (6.1 Use life insurance and life annuities to calculate premiums)

7. Policy values: Analysis of surplus/losses (7.1 Policy values, asset share and balances)

8. Multiple State Models and joint lives (8.1 Premiums calculations on contracts involving joint lives and/or different states)

9. Policy alterations (9.1 Calculate premiums and evaluate profit/loss under policy alterations)

Learning outcomes

By the end of the course, students should be able to do the following:

determine the distributions and the moment/variance of future lifetimes.
calculate the survival probabilities for single and joint lives in terms of life table functions.
determine the present value, and its expectation and variance, of various streams of cashflows for life annuities and life assurance contracts.
establish premiums for life annuities and life assurance contracts for single and joint lives - in terms of life table functions – using the equivalence actuarial principle.
examine relationships between life assurances and annuities – for single and joint lives.
compare prospective and retrospective reserves for an insurance company for single and joint lives.
evaluate the annual loss/profit for different policies, including policy alterations.
calculate premiums for multiple state models

Further details

Curriculum explorer: Click here

SCQF Level: 11

Credits: 15