Description
This subject is designed to develop mathematical techniques which are used to model and value cash flows that are dependent on events such as death, survival, illness and retirement. The breadth of topics covered provides students with the principles and practical skills required for a variety of life insurance applications, including pricing of life Insurance, assurance and annuities, reserving, assessment of profitability and defined benefit pensions.
Subject details
| Type | Undergraduate |
| Code | ACSC13-301 |
| EFTSL | 0.125 |
| Faculty | Bond Business School |
| Semesters offered |
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| Credit | 10 |
| Study areas |
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| Subject fees |
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Learning outcomes
1. Demonstrate knowledge of simple assurance and annuity contracts, and develop formulae for the means and variances of the present values of the payments under these contracts, assuming constant deterministic interest.
2. Compute net premiums and net premium reserves, using ultimate or select mortality, for simple insurance contracts, increasing and decreasing benefits and annuities.
3. Calculate gross premiums and reserves of assurance and annuity contracts.
4. Apply appropriate methods to value or project cash flows that are contingent upon multiple transition or decrement events.
5. Apply projected cash flow techniques for pricing, reserving, and assessing profitability.
6. Demonstrate the ability to produce a written report that communicates ideas clearly, cogently and thoroughly communicates, using a professional style and format.
Enrolment requirements
| Requisites: ? | Nil |
|---|---|
| Assumed knowledge: | Assumed knowledge is the minimum level of knowledge of a subject area that students are assumed to have acquired through previous study. It is the responsibility of students to ensure they meet the assumed knowledge expectations of the subject. Students who do not possess this prior knowledge are strongly recommended against enrolling and do so at their own risk. No concessions will be made for students’ lack of prior knowledge. Assumed Prior Learning (or equivalent):Possess demonstrable knowledge in the mathematics of finance to the level of a unit such as ACSC12-201 Financial Mathematics. |
| Restrictions: ? | Students must have completed 120 credit points prior to enrolling. |
Subject outlines
Subject dates
| Standard Offering | |
|---|---|
| Enrolment opens | 15/03/2020 |
| Semester start | 25/05/2020 |
| Subject start | 25/05/2020 |
| Cancellation 1? | 08/06/2020 |
| Cancellation 2? | 15/06/2020 |
| Last enrolment | 07/06/2020 |
| Withdraw – Financial? | 20/06/2020 |
| Withdraw – Academic? | 11/07/2020 |
| Teaching census? | 19/06/2020 |