The aim of this module is to develop the student's ability to apply, in simple situations, the mathematical and economic techniques and the principles of premium rating needed for the operation on sound financial lines of general insurers. Outline syllabus includes: insurance products; reinsurance products; the business environment; risk and uncertainty; data; actuarial investigations; aggregate claim distribution methods; introduction to rating methodologies and bases; rating using frequency-severity and burning cost approaches; rating using original loss curves; generalised linear modelling; use of multivariate analysis in pricing; credibility theory; rate monitoring; pricing of reinsurance; use of catastrophe models.
This module will cover a number of syllabus items set out in Subject SP8 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 applies for more than 6 students registered, the tutorial format for 6 students or less.
80% Examination, 20% Coursework
Study notes published by the Actuarial Education Company for Subject SP8.
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 General Insurance – Pricing in the context of current professional actuarial practice.
2 Demonstrate knowledge and understanding of complex current issues in General Insurance – Pricing 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 General Insurance – Premium Rating in various contexts.
6 Demonstrate skill in solving problems in General Insurance – Premium Rating by various appropriate methods.
7 Demonstrate skills in the specific mathematical and statistical techniques used in the actuarial practice of General Insurance – Pricing and their application to solving problems in that subject.
8 Demonstrate understanding of the current practical applications of the module material.
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