Life Insurance Models 2

Subject ACTL90007 (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


ACTL90006 Life Insurance Models I

Study Period Commencement:
Credit Points:


Recommended Background Knowledge:

Students should be competent in the use of Excel.

Non Allowed Subjects:


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:


Dr Xueyuan Wu



Subject Overview:

This subject provides the groundwork for the capstone subject Life Contingencies. It provides students with a framework for actuarial modelling, and introduces the key ideas of stochastic processes as they apply in actuarial science. The subject also expands students’ existing knowledge of mortality modelling by introducing the important ideas of mortality variation in a population and selection effects, which have implications for the applied topic of pricing life insurance products.

Learning Outcomes:

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

  • Describe how to test crude estimates for consistency with a standard table or a set of graduated estimates, and describe the process of graduation;
  • Describe the principles of actuarial modelling;
  • Describe the general principles of stochastic processes, and their classification into different types;
  • Define a Markov chain and apply Markov chains in actuarial problems;
  • Describe different forms of selection in insurance.
  • Develop a knowledge of actuarial modeling and the application of stochastic processes in insurance settings.

  • 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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