Statistics for Insurance - MAST5010

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Module delivery information

Location Term Level1 Credits (ECTS)2 Current Convenor3 2024 to 2025
Canterbury
Spring Term 5 15 (7.5) Peng Liu

Overview

This module covers aspects of Statistics which are particularly relevant to insurance. Some topics (such as risk theory and credibility theory) have been developed specifically for actuarial use. Other areas (such as Bayesian Statistics) have been developed in other contexts but now find applications in actuarial fields. Indicative topics covered by the module include Bayesian Statistics; Loss Distributions; Reinsurance and Ruin; Credibility Theory; Risk Models; Ruin Theory; Generalised Linear Models; Extreme Value Theory. This module will cover a number of syllabus items set out in Subjects CS1 and CS2 – Actuarial Statistics published by the Institute and Faculty of Actuaries.

Details

Contact hours

Total contact hours: 36
Private study hours:114
Total study hours: 150

Method of assessment

Assessment 1 Exercises, requiring on average between 5 and 7 hours to complete 10%
Assessment 2 Exercises, requiring on average between 5 and 7 hours to complete 10%
Assessment 3 Computer assessment, requiring on average between 10 and 15 hours to complete 10%
Examination 3 hours 70%
Assessment 3 will assess the ability to fit a generalised linear model to a data set and interpret the output.
The coursework mark alone will not be sufficient to demonstrate the student's level of achievement on the module.

Boland, P.J. Statistical and Probabilistic Methods in Actuarial Science, Chapman & Hall, 2007.
Study notes published by the Actuarial Education Company for Subjects CS1 and CS2.

See the library reading list for this module (Canterbury)

Learning outcomes

On successfully completing the module students will be able to:

1. explain basic concepts and models of Bayesian statistics and apply them to credibility theory;
2. construct risk models appropriate to short term insurance contracts and make the related statistical inference;
3. describe and apply the fundamental concepts of loss distributions;
4. describe and apply the basic methodology of generalised linear models;
5. explain basic concepts and models of extreme value theory and apply them in insurance.

Notes

1. Credit level 5. Intermediate level module usually taken in Stage 2 of an undergraduate degree.
2. ECTS credits are recognised throughout the EU and allow you to transfer credit easily from one university to another.
3. The named convenor is the convenor for the current academic session.