This module introduces students to the principles of actuarial planning and control, and mathematical and economic techniques, relevant to life insurance companies. The student should gain the ability to apply the knowledge and understanding, in simple situations, to the operation, on sound financial lines, of life insurance companies. Outline syllabus includes: principal terms used in life insurance; the main types of life insurance products; methods of distributing profits to with profits policyholders including the use of asset shares; effect of the general business environment on a life insurance company; risks to a life insurance company and methods to manage these risks (including the use of reinsurance and underwriting); use of actuarial models for decision making purposes; principles of unit pricing and the technique of actuarial funding for unit linked life insurance contracts; cost of guarantees and options; determining discontinuance and alteration terms for without profits contracts; factors to consider in determining a suitable design for a life insurance product; setting assumptions for pricing and valuing life insurance contracts; determining supervisory reserves; principles of investment for a life insurance company; monitoring actual experience of a life insurance company.
This module will cover a number of syllabus items set out in Subject SP2 published by the Institute and Faculty of Actuaries. This is a dynamic syllabus, changing regularly to reflect current practice.
Standard Delivery
Total contact hours: 72
Private study hours: 228
Total study hours: 300
Tutorial Delivery
Total contact hours: 36
Private study hours: 264
Total study hours: 300
Teaching methods will differ according to the number of students registered on the module.
The standard format, for more than 6 students registered:
The module will be taught by means of 72 hours of lectures over two terms, including example classes, computer laboratory classes and presentations.
The tutorial format, for 6 students or less registered:
The module will be taught by means of 36 small group tutorials over two terms, including example classes, computer laboratory classes and presentations.
80% Examination, 20% Coursework
Study notes published by the Actuarial Education Company for Subject SP2.
See the library reading list for this module (Canterbury)
The intended subject specific learning outcomes. On successfully completing the module students will be able to:
1 Demonstrate knowledge and understanding of complex techniques applicable to solve problems in Life Insurance in the context of current professional actuarial practice.
2 Demonstrate knowledge and understanding of complex current issues in Life Insurance in the context of current professional actuarial practice.
3 Demonstrate a high level of understanding of the main body of knowledge for the module.
4 Demonstrate skill in calculation and manipulation of the material written within the module.
5 Apply a range of concepts and principles of Life Insurance in various contexts.
6 Demonstrate skill in solving problems in Life Insurance by various appropriate methods.
7 Demonstrate skills in the specific mathematical and statistical techniques used in the actuarial practice of Life Insurance and their application to solving problems in that subject.
8 Demonstrate understanding of the current practical applications of the module material.
University of Kent makes every effort to ensure that module information is accurate for the relevant academic session and to provide educational services as described. However, courses, services and other matters may be subject to change. Please read our full disclaimer.
