Postgraduate - UnitETC5353 - Contingencies in insurance and pension

This unit entry is for students who completed this unit in 2015 only. For students planning to study the unit, please refer to the unit indexes in the the current edition of the Handbook. If you have any queries contact the managing faculty for your course or area of study.

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6 points, SCA Band 3, 0.125 EFTSL

Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered.

Level	Postgraduate
Faculty	Faculty of Business and Economics
Organisational Unit	Department of Econometrics and Business Statistics
Offered	Clayton Second semester 2015 (Day)

Synopsis

This unit focuses on the modelling and valuation of cash flows dependent on death, survival, or other uncertain risks.

Outcomes

The learning goals associated with this unit are to:

develop further actuarial mathematics and techniques developed in ETC2430 in relation to simple assurance and annuity contracts allowing for multiple decrement situations, and those involving competing risks. Practical issues arising in the actuarial management of life insurance and superannuation are addressed
calculate, using ultimate or select mortality, net premiums and net premium reserves for increasing and decreasing benefits and annuities
develop techniques for the valuation of annuity and assurance products involving two lives, and the use of actuarial functions in that situation
develop methods which can be used to model cash flows contingent upon competing risks
develop the technique of discounted emerging costs as used in profit tests, pricing assessments and reserving calculations for various insurance and pension products
address practical issues such as guarantees and options, risk classification and the effects of the pricing and reserving basis on the emergence of profit
describe the use of multi decrement models in the valuation of actuarial liabilities.

Assessment

Within semester assessment: 30%
Examination: 70%

Workload requirements

Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. The unit requires on average three/four hours of scheduled activities per week. Scheduled activities may include a combination of teacher directed learning, peer directed learning and online engagement.

Chief examiner(s)

Dr Colin O'Hare

Prerequisites

ETC2430 or equivalent.