Course co-ordinator(s): Andrea Sneddon (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:
- Models
- Investment guarantees
- Options
- Reinsurance
- Underwriting
- Actuarial funding
- Unit pricing
- Surrenders and alterations: non-profit contracts
- Product design
- Reserving
- Setting assumptions
- Risk discount rate
- Monitoring experience
Detailed Information
Pre-requisites: none.
Location: Edinburgh.
Semester: 2.
Learning Outcomes: Subject Mastery
After studying this course, students should be able to:
- explain the uses of actuarial models within life insurance companies
- explain the principles behind offering options and guarantees
- describe the uses of reinsurance and underwriting within an insurance company
- describe the techniques and principles underlying unit-linked business
- explain how discontinuance and alterations are accounted for
- describe the factors associated with life insurance product design
- explain the principles of reserving
- explain the principles of setting assumptions for valuations of different purposes
- describe how the experience of an insurance company can be monitored
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