This course develops the basic actuarial techniques that are used in later work. Topics covered include: principal forms of heterogeneity within a population and the ways in which selection can occur; definition of simple assurance and annuity contracts; development of formulae for the means and variances of the present values of the payments under these contracts, assuming deterministic interest; practical methods of evaluating expected values and variances of simple insurance and annuity contracts; description and calculation, using ultimate or select mortality, of net premiums and net premium provisions for simple insurance contracts; and the calculation of gross premiums and provisions of assurance and annuity contracts.

To achieve an understanding of and facility in:

• Mortality and selection.
• Life assurance contracts and life annuity contracts.
• Evaluation of assurances and annuities.
• Reserves and policy values.
• Mortality profit and extra risk.
• Increasing insurances and with-profit policies.
• Increasing annuities and applications of reserves.
• Multiple life functions and insurances and annuities involving two or more lives.
• Contingent and reversionary benefits.

In-class quizzes 30%
Final exam 70%

Three contact hours per week.

STAT2001 Introductory Mathematical Statistics and STAT2032 Financial Mathematics

Please refer to Course Website