- Code ACST8048
- Unit Value 6 units
- Offered by Rsch Sch of Finance, Actuarial Studies & App Stats
- ANU College ANU College of Business and Economics
- 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.
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
See the course outline on the College courses page. Outlines are uploaded as they become available.
- Assignment 20%
- Mid-semester Examination 20%
- Final Examination 60%
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Students are expected to commit at least 10 hours per week to completing the work in this course. This will include at least 3 contact hours per week and up to 7 hours of private study time.
Requisite and Incompatibility
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.
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- 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.