Actuarial Statistics

Paper Code: 
STT 324(B)
Credits: 
5
Contact Hours: 
75.00
Max. Marks: 
100.00
Objective: 

This paper aims at teaching the students to deal with asses risk in insurance and finance using statistical methods.

Course

Learning outcomes (at course level

Learning and teaching strategies

Assessment Strategies

 

Paper Code

Paper Title

STT324(B)

Actuarial Statistics

(Theory)

 

The students will be able to –

 

CO66: Assess the suitability of actuarial, financial and economic models in solving actuarial problems.

CO67: Analyze actuarial data using advanced statistical techniques.

CO68: Calculate quantities such as premiums, reserves and superannuation contribution rates using actuarial techniques.

CO69: Increase management skills for dealing with organizations, teams and policy issues;

CO70: Expand their applied knowledge in various specialized areas of actuarial studies and statistics.

Approach in teaching:

Interactive Lectures,

Group Discussion,

Classroom Assignment

Problem Solving Sessions

 

Learning activities for the students:

Assignments

Seminar

Presentation

Subject based  Activities

Classroom Quiz

Assignments

Class Test

Individual Presentation

 

15.00

Actuarial Science: Concept, scope, Introduction to insurance business, concept of risk, role of statistics in insurance. Risk models for short term: expected value principle, notation of utility risk model for short term

 

15.00

Survival Distribution: Future life time distribution and life table, future life time random variable, curate future life time, complete life table, assumption of fraction ages, force of mortality

 

15.00

Life Insurance: Actuarial present value benefit in life insurance product, compound interest, discount factor, benefit payable at the moment of death, relation between A and  pure endowment. Sickness benefit, disability benefit, widows pension, benefit dependent on marriage

 

 

15.00

Annuity: introduction, life annuity: single payment, continuous life annuity, discrete life annuity, life annuity with monthly payments, commutation function, varying annuity recursion, complete annuity: immediate and apportionable annuities- due

 

15.00

Multiple decrement tables, force of decrement, construction of decrement table. Premium: continuous and discrete premium, true monthly payment premium, apportionable premium, commutation functions, accumulation type benefits.

 

Essential Readings: 
  • Dickson, C.M.D. (2005): Insurance Risk and Ruin(International Series On Acturial Science), Cambridge University Press
  • Bowers, N.L., Gerber, H.U., Hickman, J.C., Jones, D.A., Nesbitt, C.J.(1997): Actuarial Mathematics, Society of Actuaries, Itasca, Illinois, U.S.A.
  • Atkinson, M.E. & Dickson, D.C.M. (2011). An Introduction to Actuarial Studies, Elgar Publ, second edition.
  • Daykin, C.D, Pentikainen, T & Pesonen, M. (1994). Practical Risk Theory for Actuaries, Chapman & Hall.

 

Academic Year: 
2020-2021
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