Life Contingencies

Subject ACTL90005 (2015)

Note: This is an archived Handbook entry from 2015.

Credit Points: 12.5
Level: 9 (Graduate/Postgraduate)
Dates & Locations:

This subject has the following teaching availabilities in 2015:

Semester 2, Parkville - Taught on campus.
Pre-teaching Period Start not applicable
Teaching Period 27-Jul-2015 to 25-Oct-2015
Assessment Period End 20-Nov-2015
Last date to Self-Enrol 07-Aug-2015
Census Date 31-Aug-2015
Last date to Withdraw without fail 25-Sep-2015


Timetable can be viewed here. For information about these dates, click here.
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:
Recommended Background Knowledge:

Students should be competent in the use of Excel.

Non Allowed Subjects: None
Core Participation Requirements:

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability

Coordinator

Assoc Prof Shuanming Li

Contact

shli@unimelb.edu.au

Subject Overview:

This subject applies previous studies in the areas of financial mathematics, survival modelling, stochastic processes and graduation to life insurance and superannuation products. Specifically, the subject considers pricing and reserving for life insurance policies issued to single lives or to couples. Topics such as disability income insurance, joint-life products and superannuation are considered under a multiple state model framework.

Learning Outcomes:

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;
  • Apply knowledge of financial mathematics, survival modelling, stochastic processes and graduation to problems in life insurance.
  • Describe the principal forms of heterogeneity within a population and the ways in which selection can occur.

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): Graduate Diploma in Actuarial Science
Master of Actuarial Science
Postgraduate Diploma in Actuarial Science

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