Life Contingencies

Subject ACTL90005 (2013)

Note: This is an archived Handbook entry from 2013.

Credit Points: 12.50
Level: 9 (Graduate/Postgraduate)
Dates & Locations:

This subject is not offered in 2013.
Time Commitment: Contact Hours: A 2 hour seminar and a 1 hour workshop per week
Total Time Commitment: Estimated total time commitment of 120 hours per semester
Prerequisites:

Corequisites:
Subject
Study Period Commencement:
Credit Points:
Not offered in 2013
12.50
Recommended Background Knowledge:

Students should be competent in the use of Excel.
Non Allowed Subjects: None
Core Participation Requirements:

For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website: http://www.services.unimelb.edu.au/disability/

Contact

Graduate School of Business and Economics
Level 4, 198 Berkeley Street
Telephone: +61 3 8344 1670
Online Enquiries
Web: www.gsbe.unimelb.edu.au

Subject Overview: Topics include traditional life insurance products; present values of annuities and assurances for single lives; net and gross premiums and policy values; joint life theory; cashflow models; competing risks; discounted emerging costs; guarantees and options.
Objectives:

On successful completion of this subject a student should be able to:

  • Define simple assurance and annuity contracts, and develop formulae for the means and variances of the present values of the payments under these contracts, assuming constant deterministic interest;
  • Describe practical methods of evaluating expected values and variances of the simple insurance contracts;
  • Describe and calculate, using ultimate or select mortality, net premiums and net premium provisions of simple insurance contracts;
  • Describe the calculation, using ultimate or select mortality, of net premiums and net premium provisions for increasing and decreasing benefits and annuities;
  • Describe the calculation of gross premiums and provisions of assurance and annuity contracts;
  • Define and use straightforward functions involving two lives;
  • Describe methods which can be used to model cashflows contingent upon competing risks;
  • Describe the technique of discounted emerging costs, for use in pricing, reserving, and assessing profitability;
  • Describe the calculation of the cost of guarantees and options under long term insurance contracts.
Assessment:
  • An assignment of up to 1,000 words (10%)
  • One hour mid-semester test (20%)
  • Two hour end of semester exam (70%)
Prescribed Texts: You will be advised of prescribed texts by your lecturer.
Breadth Options:

This subject is not available as a breadth subject.
Fees Information: Subject EFTSL, Level, Discipline & Census Date
Generic Skills:

High level of development:

  • Written communication;
  • Problem solving;
  • Statistical reasoning;
  • Application of theory to practice;
  • Synthesis of data and other information.
Related Course(s): Master of Actuarial Science
Postgraduate Diploma in Actuarial Science

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