STAT40980 Core Actuarial Principles 3

Academic Year 2024/2025

The module is one of a set of three modules that map to the syllabus of the Institute and Faculty of Actuaries's professional examination Actuarial Practice 1 (CP1). It builds on the technical material covered in all the earlier subjects of the BAFS degree and uses the techniques learnt to solve practical problems that might arise in any area in which actuaries practice.

This module focuses on monitoring the emerging experience of a scheme or company advised by an actuary. The student will be able to analyse the actual experience - be it in mortality or morbidity claims, expenses incurred, or investment performance of the accumulated fund - to determine where it differs from expected. The courses of action open to management are then explored to ensure the company or scheme meets reasonable expectations and remains solvent. Reconciliations (known as 'analysis of surplus') between two successive valuations are considered. The student will be able to updating actuarial models to incorporate the emerging experience.

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Curricular information is subject to change

Learning Outcomes:

The student will understand how actuaries maintain the solvency of companies and schemes advised by them, which is the first step in actually being able to advise such a firm or scheme. They will know to tools and techniques to apply and the key management decisions that must be made. They will be able to work with inaccurate models, and update and develop them as required by circumstances.

Indicative Module Content:

Review of the Actuarial Control Cycle & Risk Measuring and Monitoring

Monitoring the Emerging Experience: Data, Mortality & Morbidity, Expenses

Surplus and the Analysis of Surplus

Markets for Transferring Risk

Communicating Risk

Case Studies

Student Effort Hours: 
Student Effort Type Hours




Autonomous Student Learning




Approaches to Teaching and Learning:

This module is delivered in the traditional manner of lectures, with students participating in weekly tutorials as they work through questions on the material presented (e.g. active/task-based learning of material delivered in lectures).
Requirements, Exclusions and Recommendations

Not applicable to this module.

Module Requisites and Incompatibles
Not applicable to this module.
Assessment Strategy  
Description Timing Open Book Exam Component Scale Must Pass Component % of Final Grade

Not yet recorded.

Carry forward of passed components
Resit In Terminal Exam
Summer 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
• Self-assessment activities

How will my Feedback be Delivered?

There are regular tutorials with problem sheets the student attempts prior to the tutorial, each tutorial treating a section of the course. The student is shown the ideal approach to the questions and shown where marks are awarded, and can thus assess their own attempt at the problem sheet. The level of understanding required to do well in the problems sheets is of a similar order as required to do well in the final examination.

Name Role
Dr Monika Smatralova Lecturer / Co-Lecturer