ASRM 471. Life Contingencies I -- Instructor Syllabus
Text: David Dickson, Mary Hardy and Howard Waters. (2013). Actuarial Mathematics for Life Contingent Risks, Cambridge, Second Edition. (Chapters 1-6)
Chapter 1 – Introduction to life insurance (1 lecture)
- Brief introduction on the terminology and major types of life insurance, annuity and pension
Chapter 2 – Survival models (4 lectures)
- Future lifetime random variable
- Survival function and (deferred) probability of death
- Force of mortality and some common laws
- Complete and curate future lifetime
Chapter 3 – Life tables and selection (4 lectures)
- Life table construction and national life tables
- Fractional age assumptions
- Select and ultimate survival models
- Mortality trends
Chapter 4 – Insurance benefits (6 lectures)
- Valuation and analysis of the benefits in various traditional life insurance policies, including whole life insurance, term life insurance, pure endowment, endowment insurance, deferred contracts and variable insurance
- Recursion formulae and approximations for insurance benefits with different payment type
Chapter 5 – Annuities (7 lectures)
- Valuation and analysis of the life contingent annuities, including whole life annuity, term life annuity, deferred contracts, guaranteed annuity and increasing annuity
- Recursion formulae and approximations for annuities with different payment type
Chapter 6 – Premium calculation (5 lectures)
- Future loss random variables
- Equivalence principle of net and gross premium calculation for insurance policies and annuities
- The portfolio percentile premium principle
- Profit and extra risk analysis
Midterm Exams (2 lectures)
Total: 29