• Offered by Rsch Sch of Finance, Actuarial Studies & App Stats
  • ANU College ANU College of Business and Economics
  • Classification Advanced
  • Course subject Actuarial Studies
  • Academic career PGRD
  • Mode of delivery In Person

Covers the detailed theoretical and practical understanding of the operation and regulation of the general insurance industry and the actuarial management of risks undertaken by general insurance companies.

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

Upon successful completion of the requirements for this course, students will have a practical understanding of the operation and regulation of the general insurance industry and the actuarial management of risks undertaken by general insurance companies. In particular students will be able to:

1. Explain the main classes of general insurance, the major operations of GI companies, and understand GI accounts.

2. Understand and apply the processes for determining premium rates and pricing of GI policies, including:

  • Risk premiums and sound premiums
  • Risk classification techniques including GLM
  • The role of actuarial valuation techniques
  • Identification of factors to be considered in the premium rating process
  • Apportionment of expenses

3. Understand how reinsurance is applied in the context of GI.

4. Apply a range of valuation techniques for claims experience and estimation of outstanding claims, including:

  • The chain ladder method, payments per claim incurred and finalised, projected case estimate, Bornhuetter-Ferguson, and bootstrapping approaches
  • Selection of appropriate valuation methods and assumptions

5. Understand the processes for estimation of GI liabilities, including:

  • Philosophy of reserving and valuation
  • Practical issues in calculating outstanding claims liabilities
  • Unearned premium and unexpired risk

6. Understand the issues involved with the measurement and management of solvency and the concept of risk based capital

Other Information

See the course outline on the College courses page. Outlines are uploaded as they become available. 

Indicative Assessment

  • Assignment 20%
  • Mid-semester Examination 20%
  • Final Examination 60%

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It is anticipated that students will spend on average 5-10 hours per week on the course. This includes attending the discussion session, studying the course material, preparing solutions to question sets and assignments and preparing for exams. Students who are finding concepts difficult may need to devote considerably more time to the course. Students will be expected to spend a greater proportion of their time on this course in the lead-up to the assignment and final examination in revising the material and past exam questions or other forms of exam preparation.

Requisite and Incompatibility

To enrol in this course you must have completed STAT3038 or STAT6045

Prescribed Texts

Hart, Buchanan and Howe, Actuarial Practice of General Insurance, Institute of Actuaries of Australia, 7th Edition, 2007.



Tuition fees are for the academic year indicated at the top of the page.  

If you are a domestic graduate coursework or international student you will be required to pay tuition fees. Tuition fees are indexed annually. Further information for domestic and international students about tuition and other fees can be found at Fees.

Student Contribution Band:
Unit value:
6 units

If you are an undergraduate student and have been offered a Commonwealth supported place, your fees are set by the Australian Government for each course. At ANU 1 EFTSL is 48 units (normally 8 x 6-unit courses). You can find your student contribution amount for each course at Fees.  Where there is a unit range displayed for this course, not all unit options below may be available.

6.00 0.12500
Domestic fee paying students
Year Fee
2016 $3660
International fee paying students
Year Fee
2016 $4878
Note: Please note that fee information is for current year only.

Offerings, Dates and Class Summary Links

There are no current offerings for this course.

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