STAT40060 Actuarial Mathematics 1

Academic Year 2022/2023

The aim of this subject is to provide a grounding in the mathematical techniques which can be used to model and value cashflows dependent on death, survival or other uncertain risks.It comprises 50% of the requirements for professional exemption CM1 (along with Act Maths 2).Topics covered include:Selection and select life tablesActuarial functions for annuities and assurancesLoss random variablesNet and gross premiums and reservesMortality profitFunctions of two livesCash flow apporach to pricing. Use of Excel spreadsheets and simple VBA programmes to carry out Actuarial calculations.

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Curricular information is subject to change

Learning Outcomes:

At the end of the module students should be able to:Demonstrate understanding of select ratesConstruct life tablesDerive density and distribution functions and moments of random variables representing monetary functions associated with future lifetimes, including joint lifetimesCalculate net and gross premiums and reserves for different types of life insurance and annuity contractsCalculate mortality profit or loss on a prtfolio of policiesDerive Thiele's differential equationsEvaluate increasing and decreasing annuities and assurancesCalculate the profit vector, signature and net present value for conventional policies

Indicative Module Content:

Demonstrate understanding of select rates
Construct life tables
Derive density and distribution functions and moments of random variables representing monetary functions associated with future lifetimes, including joint lifetimes
Calculate net and gross premiums and reserves for different types of life insurance and annuity contracts
Calculate mortality profit or loss on a prtfolio of policies
Derive Thiele's differential equationsEvaluate increasing and decreasing annuities and assurances
Calculate the profit vector, signature and net present value for conventional policies

Student Effort Hours: 
Student Effort Type Hours
Lectures

24

Tutorial

8

Autonomous Student Learning

90

Total

122

Approaches to Teaching and Learning:
active/task-based learning; lectures; reflective learning; lab/studio work; enquiry & problem-based learning; 
Requirements, Exclusions and Recommendations
Learning Recommendations:

Students should have a good knowledge of basic statistics (expectations and variances), compound interest and survival models


Module Requisites and Incompatibles
Not applicable to this module.
 
Assessment Strategy  
Description Timing Open Book Exam Component Scale Must Pass Component % of Final Grade
Continuous Assessment: Continuous Assessment Throughout the Trimester n/a Other No

30

Examination: End of semester exam 2 hour End of Trimester Exam No Other No

70


Carry forward of passed components
Yes
 
Resit In Terminal Exam
Spring Yes - 2 Hour
Please see Student Jargon Buster for more information about remediation types and timing. 
Feedback Strategy/Strategies

• Feedback individually to students, post-assessment
• Group/class feedback, post-assessment
• Peer review activities
• Self-assessment activities

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