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Students who commenced study in 2016 should refer to this area of study entry for direction on the requirments; to check which units are currently available for enrolment, refer to the unit indexes in the the current edition of the Handbook. If you have any queries contact the managing faculty for your area of study.

Monash University


Commencement year

This area of study entry applies to students commencing this course in 2016 and should be read in conjunction with the relevant course entry in the Handbook.

Any units listed for this area of study relate only to the 'Requirements' outlined in the Faculty of Science component of any bachelors double degrees.

Unit codes that are not linked to their entry in the Handbook are not available for study in the current year.

Managing faculty

Faculty of Science


Faculty of Science



Financial and insurance mathematics is taught jointly by the School of Mathematical Sciences and the Faculty of Business and Economics, to ensure students develop high-level technical and analytical skills that are applicable in the workplace. Experts in this area use mathematical and statistical techniques to understand and assess risk in insurance and financial markets. Like actuaries, they determine the likelihood of specific outcomes and develop strategies that allow businesses and governments to either pursue new business opportunities or insure against risks.

The extended major in Financial and insurance mathematics was introduced at Monash University in response to the national and international shortage of skilled workers in the finance and insurance industries, most notably workers with a rigorous mathematical training.

Financial and insurance mathematics is tailored to prepare students for working in the banking industry, investment firms, insurance companies, and in risk-management roles. However, like other mathematics graduates, they may also work for the Australian Bureau of Statistics, the Commonwealth Scientific, Industrial and Research Organisation (CSIRO), or in business analyst roles, universities, or management consultancy.


Financial and insurance mathematics is listed in S2000 Bachelor of Science, S3001 Bachelor of Science Advanced - Global Challenges (Honours) and S3002 Bachelor of Science Advanced - Research (Honours) at Clayton as an extended major.


In addition to achieving the broad outcomes of their course, students successfully completing this extended major will be able to:

  • display basic knowledge and key technical skills in advanced calculus and linear algebra as well as high-level knowledge of and skills in the important techniques, terminology and processes of probability, statistics and stochastic processes as appropriate to financial and insurance mathematics;
  • develop, apply, integrate and generate knowledge through abstraction and insight, and use high-level critical thinking skills to analyse, use and interpret the mathematics that arises across a range of problems in financial and insurance mathematics, including financial and risk models;
  • demonstrate skills in the written presentation of a mathematical argument that enable mathematical, financial and insurance concepts, processes and results to be communicated effectively to diverse audiences.


Extended major requirements (72 points)

12 points at level 1 and at least 36 points at level 3.

Students complete:

(a.) One level one science sequence (12 points) from the following:

  • STA1010 Statistical methods for science and MTH1030 Techniques for modelling
  • MTH1030 Techniques for modelling and MTH2010 Multivariable calculus

Note 1: Students in the double degree course with Engineering who complete ENG1005 can replace MTH1030 in this requirement with any other level 1 science unit. These students cannot complete MTH2010 or MTH2015, and may replace MTH2010 with either ENG2005 or ENG2006 from 2017.

Note 2: Students with a strong mathematics background and an interest in the subject could replace the units MTH1030 and/or MTH2010 with their advanced versions MTH1035 and/or MTH2015 respectively. Students will need to seek permission to enrol in these units at the Science Student ServicesScience Student Services ( office.

(b.) The following three units (18 points):

Note 3: If MTH2010 was completed as part of the level 1 science sequence, replace it with a unit from the list under (d.).

(c.) The following six units (36 points):

  • ETC3400 Principles of econometrics
  • ETC3460 Financial econometrics
  • MTH3230 Time series and random processes in linear systems
  • MTH3241 Random processes in the sciences and engineering
  • MTH3251 Financial mathematics
  • ETC3420 Insurance mathematics or ETC3530 Contingencies in insurance and pensions

(d.) One additional unit (6 points) from the following:

  • MTH2021 Linear algebra with applications or MTH2025 Linear algebra (advanced)
  • MTH2032 Differential equations with modelling
  • MTH2140 Real analysis
  • MTH3011 Partial differential equations
  • MTH3051 Introduction to computational mathematics
  • MTH3060 Advanced ordinary differential equations
  • ETC2410 Introductory econometrics
  • ETC3420 Insurance mathematics or ETC3530 Contingencies in insurance and pensions

Requirements for progressing to honours

24 points of relevant level 3 mathematics and statistics units, of which normally at least 18 points are relevant to the honours project.

Refer to S3701 Bachelor of Science (Honours) for full details.

Relevant courses


Single degrees

Successful completion of this area of study can be counted towards meeting the requirements for the following single degrees:*

  • S2000 Bachelor of Science
  • S3001 Bachelor of Science Advanced - Global Challenges (Honours)
  • S3002 Bachelor of Science Advanced - Research (Honours)

Double degrees

Successful completion of this area of study can be counted towards meeting the requirements for the Bachelor of Science component in the following double degrees:*

  • B2023 Bachelor of Commerce and Bachelor of Science
  • B2016 Bachelor of Commerce Specialist and Bachelor of Science
  • D3005 Bachelor of Education (Honours) and Bachelor of Science
  • E3007 Bachelor of Engineering (Honours) and Bachelor of Science
  • C2003 Bachelor of Information Technology and Bachelor of Science
  • L3007 Bachelor of Laws (Honours) and Bachelor of Science
  • S2006 Bachelor of Science and Bachelor of Arts
  • S2007 Bachelor of Science and Bachelor of Biomedical Science
  • S2004 Bachelor of Science and Bachelor of Computer Science
  • S2003 Bachelor of Science and Bachelor of Global Studies
  • S2005 Bachelor of Science and Bachelor of Music