This course develops actuarial techniques for the valuing of policies which depend on contingent events concerning uncertain lifetimes. Topics include principal forms of heterogeneity within a population and the ways in which selection can occur; definition of simple assurance and annuity contracts; development of formulae for means and variances of the present values of payments; evaluating expected values and variances of simple insurance and annuity contracts; description and calculation of net and gross premiums and provisions for various insurance contracts; and cash flow models and profit tests, extended to multiple decrements and multiple state models.
Upon successful completion, students will have the knowledge and skills to:
- Define and price complex life assurance contracts and life annuity contracts, including a selection effect where appropriate;
- Calculate reserves, policy values and mortality profits;
- Perform complex calculations relating to increasing insurances, annuities and with-profit policies;
- Perform complex calculations relating to multiple life functions and insurances and annuities involving two or more lives;
- Perform complex calculations relating to contingent and reversionary benefits;
- Define unit-linked contracts and perform evaluations of cash-flows associated with such contracts including the setting of reserves using ‘zeroising’ approach; and
- Project expected cashflows for traditional insurance contracts and perform complex profit-testing calculations to evaluate profit vector, profit signature, net present value and the profit margin.
- Typical assessment may include, but is not restricted to: exams, assignments, quizzes, presentations and other assessment as appropriate (100) [LO 1,2,3,4,5,6,7]
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Students are expected to commit 130 hours of work in completing this course. This includes time spent in scheduled classes and self-directed study time.
Requisite and Incompatibility
Information about the prescribed textbook will be available via the Class Summary.
Tuition fees are for the academic year indicated at the top of the page.
Commonwealth Support (CSP) Students
If you 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). More information about your student contribution amount for each course at Fees.
- Student Contribution Band:
- Unit value:
- 6 units
If you are a domestic graduate coursework student with a Domestic Tuition Fee (DTF) place or international student you will be required to pay course tuition fees (see below). Course tuition fees are indexed annually. Further information for domestic and international students about tuition and other fees can be found at Fees.
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