In this module you will learn more about the mathematics behind the design and operation of common life insurance products including with profits and unit-linked products. You will learn how to price and value more complex cashflows on products such as cases where the benefits can vary and where the cashflows are contingent on the mortality, morbidity and/or survival of more than one life. You will learn how to calculate and analyse the profitability of these products.
You will have the opportunity to gain valuable, practical experience in working with one of the industry’s leading actuarial modelling software applications PROPHET, which is used by insurance and financial services companies to meet reporting responsibilities, improve risk management and develop profitable products.
You will also further develop your skills in financial modelling and learn how models can be used to solve actuarial problems. This includes applying the concepts and techniques of actuarial mathematics on real data sets using PROPHET and/or Microsoft Excel.
This module follows on from MACT4320 Financial Mathematics and MACT5340 Actuarial Mathematics 1 and together with these modules can lead to exemption from the CM1 exam of the Institute and Faculty of Actuaries (IFoA).
Lecture 32, PC Workshop 32
Single take-home test worth 30%.
Online test using VLE worth 70%.
Reassessment Method: Like-for-like Including composite form of reassessment for failed performance components – Online test using VLE
On successfully completing the module, students will be able to:
1) Describe systematically and appraise the mathematical techniques used to model and value cashflows which are contingent on mortality and morbidity risks including those based on more than one life.
2) Deploy accurately established approaches in actuarial mathematics to solve complex problems contingent on mortality and morbidity risks using a high level of skill in calculation including problems where the benefits vary with time
3) Select and use appropriate methods and models appropriate to advanced scholarship in actuarial mathematics to derive key results and solve problems which are contingent on mortality and morbidity risks accurately using a high level of skill in calculation and manipulation of models
4) Develop and adapt models to solve complex actuarial problems either by hand or via use of specific software and information technology and with an appreciation of the uncertainty involved.
5) Interpret, comment upon and communicate accurately the results of the models derived in 4).
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.