Faculty of Business and Economics

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This unit entry is for students who completed this unit in 2016 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.

Monash University

6 points, SCA Band 3, 0.125 EFTSL

Undergraduate - Unit

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


Business and Economics

Organisational Unit

Department of Econometrics and Business Statistics


Dr Dan Zhu



  • Second semester 2016 (Day)


To provide a grounding in the mathematics and statistics of short term insurance risk.


The learning goals associated with this unit are to:

  1. calculate probabilities and moments of loss distributions both with and without limits and risk-sharing arrangements
  2. construct risk models involving frequency and severity distributions and calculate the moment generating function and the moments for the risk models both with and without simple reinsurance arrangements
  3. explain the concept of ruin for a risk model
  4. describe the fundamental concepts of risk rating and apply them to simple experience rating systems
  5. describe and apply techniques for analysing a delay (or run-off) triangle and projecting the ultimate position.


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.

See also Unit timetable information

Chief examiner(s)


Students must have passed one of the following units: ETC2420 or ETC2520