Registry
Module Specifications
Current Academic Year 2012 - 2013
Please note that this information is subject to change.
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| Description | |||||||||||||||||||||||||||||||||||||||||||||
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The aim of the module is to provide a grounding in the mathematical techniques that can be used to model and value cashflows dependent on death, survival, or other uncertain risks. A second aim of the module is to provide students with the opportunity to be recommended for exemption from subject CT5 of the professional examinations of the Institute of Actuaries. | |||||||||||||||||||||||||||||||||||||||||||||
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All module information is indicative and subject to change. For further information,students are advised to refer to the University's Marks and Standards and Programme Specific Regulations at: http://www.dcu.ie/registry/examinations/index.shtml |
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| Indicative Content and Learning Activities | |||||||||||||||||||||||||||||||||||||||||||||
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Functions for one life. Define and use straightforward functions involving only one life. In respect of these functions: define assurance and annuity contracts and develop formulae for the means and variances of the present value of the benefits under the contracts [CT5-(i)]. Evaluation of means and variances. Develop practical methods of evaluating expected values and variances of contracts [CT5-(II)]. Net premiums and reserves. Describe and calculate net premiums and net premium reserves [CT5-(iii)]. Changing benefits. Describe the calculation of net premiums and net premium reserves for increasing and decreasing benefits [CT5-(iv)]. Gross premiums and reserves. Describe and calculate gross premiums and gross premium reserves [CT5-(v)]. Two lives. Define and use straightforward functions involving two lives and those that involve a fixed term as well as age. In respect of these functions: define assurance and annuity contracts and develop formulae for the means and variances of the present value of the payments under the contracts; define practical methods of evaluating means and variances under contracts; describe and calculate net premiums and net premuium reserves; describe the calculation of net premiums and net premium reserves for increasing and decreasing benefits; and describe gross premiums and gross premium reserves [CT5-(vi)]. Competing risks. Describe methods that can be used to model cashflows contingent on competing risks: use of multiple-state Markov models; use of Kolmogorov equations; and derivation of transition intensities [CT5-(vii)]. Discounted cash flows. Describe the technique of discounted emerging costs for use in pricing, reserving and assessing profitability. Develop profit testing techniques for unit linked and traditional products; use profit testing for pricing and reserving; use multiple decrement tables and practical alternatives; and apply the techniques to cashflows dependent on non-human contingent risks [CT5-(viii)]. Mortality and morbidity. Describe the principal forms of heterogeneity within a population and the ways in which selection can occur. Describe the factors that affect human morbidity and mortality. Define and give examples of the main forms of selection: describe selection in the context of pension schemes and life assurance contracts; explain why it is necessary to have different mortality tables for different classes of lives; explain how decrements can have a selective effect; describe the use of risk classification, genetic information and a single figure index for measuring mortality in a population, with examples and illustrations of use [CT5-(ix)]. | |||||||||||||||||||||||||||||||||||||||||||||
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| Programme or List of Programmes | |||||||||||||||||||||||||||||||||||||||||||||
| ACM | BSc Actuarial Mathematics | ||||||||||||||||||||||||||||||||||||||||||||
| FM | BSc in Financial & Actuarial Mathematics | ||||||||||||||||||||||||||||||||||||||||||||
| Timetable this semester: Timetable for MS448 | |||||||||||||||||||||||||||||||||||||||||||||
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