This module provides students with a solid background for life contingent insurance. Students are required to understand tabular/parametric survival models. Students also understand how to calculate the present value of random variables associated with benefits and expenses. Students are equipped with efficient skills to calculate premiums for various life insurance contracts, including allowance for expenses and profits.
A. Understand the life insurance, simple assurance and annuity contracts
B. Construct the mathematical formula for a variety of survival models
C. Apply life table and selection to calculate survival probability
D. Assess insurance benefits
E. Classify, define and derive the expected present values of life annuities and be able to use recursive equations; Express the values of life annuities in terms of the life table functions.
F. Calculate net premiums and net reserves for profit contracts and calculate gross premiums and the annual loss/profit for different contracts and policies.
G. Analyze and calculate reserves for insurances and annuities and describe the prospective and retrospective reserves.
This module is delivered through formal lectures and tutorial classes