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

Postgraduate - 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 Colin O'Hare



  • Second semester 2016 (Day)


Statistical methods in insurance will cover some of the approaches used to model insurance claims data and short term risk data. Topics covered will include decision theory, credibility theory, time series modelling, generalise linear modelling, Bayesian statistics and monte carlo simulation.


The learning goals associated with this unit are to:

  1. explain the concept of decision theory and apply them
  2. explain the concepts of Bayesian statistics and apply them
  3. explain the concepts of generalised linear models
  4. define and understand the methods of time series modelling as applied to insurance data
  5. understand the different types of actuarial products including annuity and assurance type products, their pricing and notation
  6. understand and apply the concepts of credibility theory
  7. explain monte carlo simulation
  8. critically analyse the application of principles underlying econometric analysis.


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 be enrolled in course 4439.