This course continues coverage of techniques for risk modelling beyond those introduced in Risk Modelling 1, with an emphasis on application to insurance portfolios.

Learning Outcomes

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

1. Describe and calculate measures of investment risk, and how insurance companies reduce risk.
2. Describe the properties of compound loss distributions and derive moments of compound distributions, both with and without risk sharing arrangements.
3. Describe and apply compound Poisson processes to calculate the probability of ruin for insurance portfolios.
4. Describe and apply run-off triangle methods for valuing insurance liabilities.

Research-Led Teaching

Gaurav has many years of professional practice and active research. He also has the relevant background in the field of valuation and risk management. The course will address current issues of interest and current approaches to actuarial practice in valuation and risk management.

Examination Material or equipment

Please see the Wattle course site for information on examination material. For mid-term exam, this will be released by the end of week 5; and for the final exam, this will be released

no later than week 10.

Required Resources

Comprehensive lecture notes and lecture slides will be made available on Wattle.

In many weeks of this course, we will be using Excel spreadsheets and R-software in class to demonstrate various aspects of the course, so please ensure you have access to the softwares on your device. Access to Excel is free for ANU students though the ANU IT database. R can be downloaded for free at https://cran.r-project.org/

Recommended Resources

There are no prescribed texts besides the lecture notes, however, there are optional texts available. Details of these will be provided in Wattle.

Staff Feedback

Students will be given feedback before the end of week 6 in the following forms in this course: 

• in tutorials through interactions with tutors and discussions with other students; 

• through assessments where tutors will provide specific feedback; 

• through consulting teaching staff during their consultation time. 

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.

Other Information

Support for Students

The University offers a number of support services for students. Information on these is available online from http://students.anu.edu.au/studentlife/

Communication via Email

If I, or anyone in the School, College or University administration, need to contact you, we will do so via your official ANU student email address, which you need to check regularly. If

you have any questions for the teaching and course convenor make sure you email them using your ANU email address. Emails from personal email accounts will not be answered.

Announcements

Students are expected to check the Wattle site for announcements about this course, e.g. changes to timetables or notifications of cancellations.

Assessment Requirements

As a further academic integrity control, students may be selected for a 15 minute individual oral examination of their written assessment submissions.

Any student identified, either during the current semester or in retrospect, as having used ghost writing services will be investigated under the University’s Academic Misconduct Rule.

Scaling

Your final mark for the course will be based on the raw marks allocated for each of your assessment items. However, your final mark may not be the same number as produced by

that formula, as marks may be scaled. Any scaling applied will preserve the rank order of raw marks (i.e. if your raw mark exceeds that of another student, then your scaled mark

will exceed the scaled mark of that student), and may be either up or down.

Referencing Requirements

In assignments and exams, students must appropriately reference any results, words or ideas that they take from another source which is not their own. A guide can be found

at https://academicskills.anu.edu.au/resources/handouts/referencing-basics .

Co-Teaching

STAT3058 shares the same lecture content and assignments with STAT6058, however these cohorts may have separate tutorials and different assessments. The different cohorts of students will also be treated separately in grading and any scaling that is applied.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Introduction to the Course Risk and Insurance Companies
2	Aggregate loss distributions
3	Aggregate loss distributions	Release of Assignment 1 via Wattle
4	Ruin Theory
5	Ruin Theory	Submission of Assignment 1 via Wattle
6	Ruin Theory Mid-Sem Review	Mid-semester Exam (week 6 or 7)
7	Run-off Triangles	Mid-semester Exam (week 6 or 7)
8	Run-off Triangles
9	Premium Principles	Release of Assignment 2 via Wattle
10	Premium Principles
11	Premium Principles	Submission of Assignment 2 via Wattle
12	Review and Catch up	There will be a final exam during the university examination period. More information and instructions regarding final exams will be provided no later than week 10.

Tutorial Registration

Tutorials will be available on campus, live through scheduled Zoom sessions and as pre-recorded videos. Students should enrol in their tutorial using MyTimetable.

"ANU utilises MyTimetable to enable students to view the timetable for their enrolled courses, browse, then self-allocate to small teaching activities / tutorials so they can better plan their time. Find out more on the Timetable webpage (https://www.anu.edu.au/students/program-administration/timetabling)".

 

Assessment Summary

Assessment task	Value	Due Date	Return of assessment	Learning Outcomes
Assignment 1	5 %	25/08/2022	02/09/2022	1,2
Mid-semester Exam	20 %	02/09/2022	30/09/2022	1,2,3
Assignment 2	20 %	21/10/2022	02/11/2022	1,2,3,4
End of Semester Exam	55 %	03/11/2022	01/12/2022	1,2,3,4

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details

Policies

ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:

• Student Assessment (Coursework) Policy and Procedure
• Special Assessment Consideration Policy and General Information 
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure

Assessment Requirements

The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the Academic Integrity . In rare cases where online submission using Turnitin software is not technically possible; or where not using Turnitin software has been justified by the Course Convener and approved by the Associate Dean (Education) on the basis of the teaching model being employed; students shall submit assessment online via ‘Wattle’ outside of Turnitin, or failing that in hard copy, or through a combination of submission methods as approved by the Associate Dean (Education). The submission method is detailed below.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.

Participation

Course content delivery will take the form of weekly on-campus lectures (recorded and available via echo360 on Wattle) and weekly tutorials, delivered in hybrid format (on campus, live through scheduled Zoom sessions and as pre-recorded videos). Weekly consultations with the lecturer and the tutor(s) will be conducted over Zoom.

Examination(s)

Centrally scheduled examinations through Examinations, Graduations & Prizes will be timetabled prior to the examination period. Please check ANU Timetabling for further information.

Assessment Task 1

Assignment 1

Assignment 1 will cover materials from weeks 1-3 (Risk and Insurance Companies and Aggregate loss distributions). The assignment will require answers to some problem solving. The students are expected to complete this assignment individually. The assignment will be submitted in Wattle via Turnitin.

Questions will be available on Wattle by CoB 12.08.2022.

Value: 5% (Not Redeemable)

Due date and time: Thursday 25 August. 3 pm (week 5)

Assessment Task 2

Mid-semester Exam

Details of task:

The Mid-Semester Exam will be 3 hours. Please note that the Mid-Semester Exam is redeemable. The Mid-Semester exam will cover materials up to and including Ruin Theory. The exam will be a Wattle-based online exam (submission via Wattle and email/one-drive). It will be open book and all materials are permitted. This exam will not be actively invigilated via Proctorio or Zoom.

Value: 20% or 0% (Redeemable)

Date: The Mid-Semester Exam will be scheduled for Week 6 or Week 7, however, this date may change depending on availability. The exam will be centrally timetabled and details of the final examination timetable will be made available on the ANU Timetabling website.

Assessment Task 3

Assignment 2

Details of task: Students will be required to analyse data and answer the provided questions. Microsoft Excel and R are expected to be used. This will include materials up to and including Run-off Triangles. The students are expected to complete this assignment individually. The assignment will be submitted in Wattle via Turnitin.

Questions will be available on Wattle by CoB 07.10.2022.

Value: 20% (Not Redeemable)

Due date and time: Friday 21 October 4 pm (Week 11)

Assessment Task 4

End of Semester Exam

Details of task:

The Final Exam is compulsory. Further details relating to the Exam will be provided closer to the scheduled date and no later than week 10. The exam will be a Wattle-based online exam (submission via Wattle and email/one-drive). The final examination will be 4 hours long and cover the entire syllabus. It will be open book and all materials are permitted. This exam will not be actively invigilated via Proctorio or Zoom.

Value: 55% or 75%

Date: November 3rd is the earliest date the exam can be held. The exam will be centrally timetabled and details of the final examination timetable will be made available on the ANU Timetabling website.

Academic Integrity

Academic integrity is a core part of the ANU culture as a community of scholars. At its heart, academic integrity is about behaving ethically, committing to honest and responsible scholarly practice and upholding these values with respect and fairness.

The ANU commits to assisting all members of our community to understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to be familiar with the academic integrity principle and Academic Misconduct Rule, uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with.

The Academic Misconduct Rule is in place to promote academic integrity and manage academic misconduct. Very minor breaches of the academic integrity principle may result in a reduction of marks of up to 10% of the total marks available for the assessment. The ANU offers a number of online and in person services to assist students with their assignments, examinations, and other learning activities. Visit the Academic Skills website for more information about academic integrity, your responsibilities and for assistance with your assignments, writing skills and study.

Online Submission

You will be required to electronically sign a declaration as part of the submission of your assignment. Please keep a copy of the assignment for your records. Unless an exemption has been approved by the Associate Dean (Education) submission must be through Turnitin.

Assignment 1 will consist of numerical problem solving. You can submit a handwritten or a typed document (preferred). Details on how to submit handwritten assignments will be provided on Wattle.

Assignment 2 submission will consist of a report and software related files (R/Excel) uploaded to Wattle to the relevant Assignment activity. Details on how to submit handwritten assignments will be provided on Wattle.

Hardcopy Submission

No hard copy assignment submissions are accepted.

Late Submission

No submission of assessment tasks without an extension after the due date will be permitted. If an assessment task is not submitted by the due date, a mark of 0 will be awarded.

Referencing Requirements

Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.

Returning Assignments

The two assignments will be returned to students with feedback in Week 7 and Week 12 respectively through Turnitin.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. Extensions may be granted for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Resubmission of Assignments

Students will not be permitted to resubmit assignments.  

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information.
In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service – including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy.
If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes.

Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).

• ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
• ANU Diversity and inclusion for students with a disability or ongoing or chronic illness
• ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
• ANU Academic Skills and Learning Centre supports you make your own decisions about how you learn and manage your workload.
• ANU Counselling Centre promotes, supports and enhances mental health and wellbeing within the University student community.
• ANUSA supports and represents undergraduate and ANU College students
• PARSA supports and represents postgraduate and research students