The module provides mathematical, probabilistic and statistical techniques to construct and assess the risk models for the insurers. The students are required to be familiar with severity, frequency, aggregate and ruin models. The students are also expected to know the steps in the modeling processes, understand the assumptions in the each family of models, construct risk models given a business application, and appropriately adjust the models for insurance coverage modifications.
A Explain the concepts of decision theory and apply them.
B Determine severity distributions with different insurance package
C Find frequency distributions
D Apply formulas for the aggregate models to calculate the premiums
E Evaluate the impact of losses on the premiums for the different insurance policies
F Analyze the risk reassures and know how to apply them to manage risk
G Formulate ruin probability and calculate it for simple cases
This module is delivered through formal lectures and tutorial classes