ETC3530 - Contingencies in insurance and pensions

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Overview

This unit covers: valuation of cash flows contingent on death or survival using mortality tables, insurance policies with constant or variable benefit, and with-profits contracts. Also covered are pricing assessments and reserving calculations for various insurance and pension products, involving one or two lives, and subject to multiple competing risks … For more content click the Read More button below.

This unit covers: valuation of cash flows contingent on death or survival using mortality tables, insurance policies with constant or variable benefit, and with-profits contracts. Also covered are pricing assessments and reserving calculations for various insurance and pension products, involving one or two lives, and subject to multiple competing risks (e.g. withdrawal, sickness). Practical issues such as guarantees and options, as well as the effects of the pricing and reserving basis on the emergence of profit, will also be addressed.

Offerings

S2-01-CLAYTON-ON-CAMPUS

Requisites

Prerequisite

Rules

Enrolment Rule

Contacts

Chief Examiner(s)

Mr Hamza Hanbali

Learning outcomes

On successful completion of this unit, you should be able to:

calculate, using ultimate or select mortality, net premiums and net premium reserves for increasing and decreasing benefits and annuities

develop techniques for the valuation of annuity and assurance products involving two lives, and the use of actuarial functions in that situation

develop methods which can be used to model cash flows contingent upon competing risks

use the technique of discounted emerging costs as used in profit tests, pricing assessments and reserving calculations for various insurance and pension products

address practical issues such as guarantees and options, risk classification and the effects of the pricing and reserving basis on the emergence of profit.

Teaching approach

Peer assisted learning

Assessment

1 - Within semester assessment

2 - Examination

Scheduled and non-scheduled teaching activities

Lectures

Tutorials

Workload requirements

Workload

Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. The unit requires on average three/four hours of scheduled activities per week. Scheduled activities may include a combination of teacher directed learning, peer directed learning and online engagement.

Other unit costs

Costs are indicative and subject to change.
Electronics, calculators and tools: $40