BUS3024S - Actuarial Science II Contingencies

Course Outline:

The course aims to provide a grounding in the mathematical techniques used to model and value cash flows dependent on death, survival or other uncertain risks. Topics covered include: Simple assurance and annuity contracts; more complex contracts (increasing benefits); derivation of formulae for means and variances of benefit payments; definition of standard actuarial symbols and the relationships between them, including standard life table functions (ultimate and select); calculation of net premiums and net premium provisions (prospective and retrospective); derivation of Thiele's differential equation; calculation of death strain at risk, actual and expected death strains, mortality profit; calculation of gross premiums; functions involving two lives; cash flow models; discounted emerging costs; heterogeneity within a population.