Course co-ordinator(s): Gavin Reid (Edinburgh).
Aims:
The aims of this course are to:
- introduce the principles of actuarial planning and control within life insurance companies; and
- apply this knowledge and understanding to practical situations in life insurance.
Summary:
- Life office balance sheet
- Asset share
- Policy values
- Strain, surplus and profit
- Analysis of surplus
- Assets
- Bonus and cost of bonus
- Life insurance products
- General business environment
- Sources of risk
- Risk management
Detailed Information
Pre-requisites: none.
Location: Edinburgh.
Semester: 1.
Learning Outcomes: Subject Mastery
After studying this course, students should be able to:
- explain the concept of asset share and its main uses;
- describe the basic principles of determining policy values;
- explain the influences on the emergence of profit over the course of a policy's life;
- describe and analyse sources of profit;
- explain methods of distributing profits to with profits policyholders;
- explain the principles of investment in relation to life insurance business;
- describe the purpose of life insurance products, and their structures and risks;
- explain the impact of the general business environment on life insurance companies;
- discuss the main sources of risk to an insurer and explain how these risks can be managed.
Reading list:
The AMS department’s ‘Life Office Practice Book’ provides useful background reading on the topics covered in the course. In addition, students are encouraged to read widely on the subject of life insurance through eg papers from the ‘British Actuarial Journal’, and articles from ‘The Actuary’ magazine.
Assessment Methods:
F71LA and F71LB are linked and will be assessed 20% by coursework during semester 1 & 2 and 80% by a 3-hour exam at the end of semester 2.
SCQF Level: 11.
Credits: 15.
Other Information
Help: If you have any problems or questions regarding the course, you are encouraged to contact the lecturer
VISION: further information and course materials are available on VISION