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.

Learning Outcomes

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

1. Define and price complex life assurance contracts and life annuity contracts, including a selection effect where appropriate;
2. Calculate reserves, policy values and mortality profits;
3. Perform complex calculations relating to increasing insurances, annuities and with-profit policies;
4. Perform complex calculations relating to multiple life functions and insurances and annuities involving two or more lives;
5. Perform complex calculations relating to contingent and reversionary benefits;
6. Define unit-linked contracts and perform evaluations of cash-flows associated with such contracts including the setting of reserves using ‘zeroising’ approach; and
7. 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.

Research-Led Teaching

The material covered in this course covers established principles in actuarial work and academia.

Examination Material or equipment

The final exam is closed book and covers the whole unit. A formula package and actuarial life tables will be provided during the exam. A calculator that allows you to perform basic arithmetic calculations including exponential and logarithmic functions will be needed during the exam. More details will be advised no later than teaching week 10 of the semester. 

The final exam is on-campus and centrally scheduled examinations through Examinations, and will be timetabled prior to the examination period. Please check ANU Timetabling for further information.

Required Resources

Course notes and materials will be provided via Canvas. You will need access to a calculator to complete exercises required for this course. You will need access to a computer to get the materials necessary for the course. We will use MS Excel in this course. Some assignment and tutorial questions and solutions will be illustrated using MS Excel. You are assumed to have experience in Excel from previous courses in your actuarial degree. Excel software is available for free to ANU students through Microsoft Office 365 .

Recommended Resources

There are no prescribed textbooks for this course. 

Staff Feedback

Students will be given feedback in the following forms in this course:

• Self-study feedback in tutorials, quizzes and assignments; 
• Whole of class or individual feedback in-class or online for performance in quizzes, and assignments; 
• Individual feedback on student performance in assessment tasks is available on request from the lecturer or marker; please make an appointment to request this; 
• Individual feedback during consultations with the lecturer/ tutor.

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. Ifyou 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 Canvas course site for announcements about this course, e.g. changes to timetables or notifications of cancellations.

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 bythat 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 willexceed 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

STAT6043 shares the same lecture content with STAT3037, however these cohorts may have 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	Mortality and selection
2	Life assurance and annuity contracts
3	Evaluation of assurances and annuities
4	Gross premium calculations and accumulations	Quiz 1
5	Reserves and policy values
6	Policy values, mortality profit and extra risk
7	Increasing insurances and with-profit policies
8	Increasing annuities and applications of reserves	Assignment due
9	Multiple life functions and policies	Quiz 2
10	Cash flow models and profit testing
11	Multiple decrement and multiple state models	Quiz 3
12	Unit-linked policies

Tutorial Registration

Tutorials will be held on campus weekly (starting from week 2). 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.

Tutorial registration will be available two weeks prior to the beginning of the semester and will close at the end of week 1. More details can be found 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
Quiz	5 %	11/08/2025	22/08/2025	1
Quiz	5 %	29/09/2025	10/10/2025	1,2,3,5
Quiz	5 %	13/10/2025	24/10/2025	1,2,3,4,5
Assignment	20 %	26/09/2025	17/10/2025	1,2
Final Examination	70 %	30/10/2025	27/11/2025	1,2,3,4,5,6,7

* 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 ANU Online website Students may choose not to submit assessment items through Turnitin. In this instance you will be required to submit, alongside the assessment item itself, hard copies of all references included in the assessment item.

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

All lectures will be conducted on campus (recorded and available via echo360 on Canvas). Tutorials will be available on campus (not recorded) starting from week 2.

Students are expected tohave viewed the recommended readings before classes. Attendance at lectures, workshops and tutorials, while not compulsory, is expected in line with “Code of Practice forTeaching and Learning”, clause 2 paragraph (b). Weekly consultations with the lecturer and the tutor(s) will be conducted either in-person or 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

Quiz

Students are required to complete 3 online quizzes throughout the semester in weeks 4, 9, and 11, respectively.

Each quiz is 25 minutes in duration, with one attempt permitted. Once started, a quiz cannot be paused. Students must ensure they begin the quiz at least 25 minutes before the deadline.

Each quiz consists of 5 multiple-choice questions worth 1 mark each. Each multiple-choice problem includes four answer choices identified by the letters A, B, C, and D, only one of which is correct. Additional details, if any, will be communicated during lectures and posted on Canvas prior to the week of each quiz.

Topics covered by the quizzes are as follows: 

• Quiz 1 covers topics from week 1 to 2.
• Quiz 2 covers topics from week 1 to 7, with a focus on topics in week 7.
• Quiz 3 covers topics from week 1 to 9, with a focus on topics in week 8-9.

Value: The best 2 out of 3 quiz results will count towards the final course grade. Each quiz is worth 5%, contributing a total of 10% to the overall course grade.

Quiz access and date:

• Quiz 1 will be made available on Canvas in Week 4 from 9am (AEST) on Monday, 11 August to 9pm (AEST) on Friday, 15 August.
• Quiz 2 will be made available on Canvas in Week 9 from 9am (AEST) on Monday, 29 September to 9pm (AEST) on Friday, 3 October.
• Quiz 3 will be made available on Canvas in Week 11 from 9am (AEST) on Monday, 13 October to 9pm (AEST) on Friday, 17 October.

Return date: Quiz scores will be uploaded to Canvas by the second lecture in the week following each quiz.

Feedback: Quiz solutions will be made available on Canvas by the second lecture in the week following each quiz. The lecturer will review the solutions during lecture time.

Important note: Quizzes CANNOT be deferred. Students MUST complete each quiz within the scheduled time period. Failure to do so will result in a score of ZERO.

Assessment Task 2

Quiz

See Assessment Task 1 for details on Quiz 2.

Assessment Task 3

Quiz

See Assessment Task 1 for details on Quiz 3.

Assessment Task 4

Assignment

This assignment will cover materials from weeks 1- 6. Microsoft Excel is expected to be used for data analysis and calculations. The students are expected to complete this assignment individually. The assignment will be submitted in Canvas via Turnitin.

This assignment is non-redeemable. Late submissions will not be accepted without prior permission from the course convenor and students will receive a mark of zero for the assignment if it is submitted after the due date.

The assignment, including the topic, submission and other requirements, will be released on Friday, 12 September.

Value: 20% of the overall grade.

Due date: 23:59 (AEST) on Friday, 26 September (Week 8).

Return date: Grades will be released on Canvas on Friday 17 October (Week 11).

Feedback: Assignment solution will be provided on Canvas by Friday, Week 11. Short individual feedback will be provided online for students who did not score full marks. More detailed feedback from the marker may be available by appointment/ email. General feedback may be given to the whole class in lecture/ on Canvas on cohort performance.

Assessment Task 5

Final Examination

The final examination will be a three-hour, on-campus, invigilated and closed-book exam which covers the entire syllabus. A formula package and an actuarial life table will be provided. No dictionaries are allowed. The final exam is a compulsory piece of assessment and worth 70% of the total assessment. The final exam will be held during the exam period with details to be advised no later than teaching week 10 of the semester. The exam is centrally scheduled through Examinations, Graduations & Prizes and it will be timetabled prior to the examination period. Please check ANU Timetabling for further information. 

Academic Integrity

Academic integrity is a core part of our culture as a community of scholars. At its heart, academic integrity is about behaving ethically. This means that all members of the community commit to honest and responsible scholarly practice and to upholding these values with respect and fairness. The Australian National University commits to embedding the values of academic integrity in our teaching and learning. We ensure that all members of our community 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 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 University has policies and procedures in place to promote academic integrity and manage academic misconduct. Visit the following Academic honesty & plagiarism website for more information about academic integrity and what the ANU considers academic misconduct. The ANU offers a number of services to assist students with their assignments, examinations, and other learning activities. The Academic Skills and Learning Centre offers a number of workshops and seminars that you may find useful for your studies.

Online Submission

The assignment is to be submitted online on Canvas at the pre-specified location via Turnitin. You must attach a signed assignment cover sheet. Please keep a copy of tasks completed for your records.

Hardcopy Submission

There is no hardcopy submission for the assignments of this course.

Late Submission

No submission of assignment 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

Assignment mark and comment will be returned via Canvas or email.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure The Course Convener may grant extensions 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