Life Insurance Models 2

This subject has the following teaching availabilities in 2016:

Estimated total time commitment of 120 hours per semester

ACTL90006 Life Insurance Models I

None

Students should be competent in the use of Excel.

None

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

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.

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%)

You will be advised of prescribed texts by your lecturer.

This subject is not available as a breadth subject.

High level of development:

• Written communication;
• Problem solving;
• Statistical reasoning;
• Application of theory to practice;
• Synthesis of data and other information.