Module Catalogues

Life Insurance Mathematics

Module Title Life Insurance Mathematics
Module Level Level 4
Module Credits 5.00
Academic Year 2021/22
Semester SEM2

Aims and Fit of Module

The module aims to provide a solid foundation in the mathematical techniques typically used to model and evaluate cash flows dependent on death, survival, or other uncertain risks along with a thorough background for life contingent insurance management. Students are guided to understand tabular/parametric survival models. Students will learn how to calculate the present value of random variables associated with benefits and expenses. Furthermore, students are equipped with efficient skills allowing them to calculate premiums for various life insurance contracts, including allowance for expenses and profits.

Learning outcomes

A. Construct mathematical formulae for a variety of survival models and life table. B. Explain life insurance, simple assurance and annuity contracts. C. Calculate net premiums and net reserves for profit contracts and calculate gross premiums and annual losses/profits for different contracts and policies. D. Analyse and calculate reserves for insurances and annuities and describe prospective and retrospective reserves. E. Construct multiple state models. F. Apply pension mathematical models for product pricing. G. Develop profit testing for traditional insurance and modern insurance products.

Method of teaching and learning

This module is delivered through formal lectures and tutorials.