This module gives you the technical foundation required in the key actuarial areas of designing and pricing life insurance products. You will learn to calculate the financial impact of uncertain future events and gain a systematic understanding of the key principles underlying mortality rates and interest rates.
You will apply this knowledge to model cashflows contingent on mortality, morbidity and/or survival, enabling you to price and value a wide range of life insurance products including those with complex benefit structures. You will also learn valuable real-world proficiencies, including calculating and analysing profitability of these products.
In addition, you will also gain hands-on experience working with spreadsheet software (e.g. Microsoft Excel) to solve complex actuarial problems, enabling you to add to your skill set of professional competencies.
This module follows on from MACT7320 (Financial Mathematics) and together, these two modules can lead to exemption from subject CM1 of the Institute and Faculty of Actuaries (IFoA).
Lecture 32
PC Workshop 32
Independent Study 86
Assessment Preparation 50
Total Hours 200
Take home test worth 30%
Online test using VLE worth 70%
Reassessment: Like-for-like
Composite form of reassessment for failed components – Online test using VLE
On successfully completing the module, students will be able to:
1) describe, analyse and discuss critically 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) systematically appraise and deploy 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 methods and models appropriate to advanced scholarship in actuarial mathematics to derive key results and solve complex problems which are contingent on mortality and morbidity
4) develop, adapt and critically assess advanced 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 and communicate the results of the models derived in 4).
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