The aim of the Actuarial Control Cycle 1 and 2 is to provide students with an understanding of how the underlying actuarial principles can be applied to a range of problems and issues in commercial and business environments. The Actuarial Control Cycle forms a bridge between Part I, where students learn specific technical skills in a well-defined environment, and Part II, where students are taught to apply these skills in less well-defined business and commercial environments. During Part II accreditation with the Actuaries Institute, students are expected to develop a holistic approach to practical problem solving, and develop a level of judgement and professional skills required to successfully apply actuarial principles to real-world problems. The Actuarial Control Cycle demonstrates a holistic approach to understanding how actuarial principles relate to actuarial practice in the financial services and other industries. It is presented in general terms to highlight its application beyond financial services. Examples will be drawn from traditional and non-traditional areas to illustrate and establish the underlying actuarial principles in a problem-based learning approach, using case studies and business-based examples.
|Academic unit:||Bond Business School|
|Subject title:||Actuarial Control Cycle 2|
Delivery & attendance
|Prescribed resources:|| |
|[email protected] & Email:||[email protected] is the online learning environment at Bond University and is used to provide access to subject materials, lecture recordings and detailed subject information regarding the subject curriculum, assessment and timing. Both iLearn and the Student Email facility are used to provide important subject notifications. Additionally, official correspondence from the University will be forwarded to students’ Bond email account and must be monitored by the student.|
To access these services, log on to the Student Portal from the Bond University website as www.bond.edu.au
This subject is not available as a general elective. To be eligible for enrolment, the subject must be specified in the students’ program structure.
Assurance of learning
Assurance of Learning means that universities take responsibility for creating, monitoring and updating curriculum, teaching and assessment so that students graduate with the knowledge, skills and attributes they need for employability and/or further study.
At Bond University, we carefully develop subject and program outcomes to ensure that student learning in each subject contributes to the whole student experience. Students are encouraged to carefully read and consider subject and program outcomes as combined elements.
Program Learning Outcomes (PLOs)
Program Learning Outcomes provide a broad and measurable set of standards that incorporate a range of knowledge and skills that will be achieved on completion of the program. If you are undertaking this subject as part of a degree program, you should refer to the relevant degree program outcomes and graduate attributes as they relate to this subject.
Subject Learning Outcomes (SLOs)
On successful completion of this subject the learner will be able to:
- Review of Actuarial Control Cycle I
- Choice of data and assumptions
- Recognise the importance of Capital
- Apply relevant approaches and techniques to the valuation of liabilities
- Apply appropriate techniques to the pricing of products and contracts.
- Measure, report and manage solvency.
- Monitor and assess experience
- Manage the business and respond to the experience.
|Essay||Assignment (to show how the valuation basis would influence the emergence of yearly profits)||10%||Week 5||1, 2.|
|Essay||Assignment (to construct liability projections based on certain assumptions)||10%||Week 8||1, 2, 3, 4, 5, 6.|
|Paper-based Examination (Closed)||Comprehensive Final Examination with non-programmable calculator||50%||Final Examination Period||1, 2, 3, 4, 5, 6, 7, 8.|
|Paper-based Examination (Closed)||Mid Semester Exam (Saturday of week 6)||30%||Week 6 (Mid-Semester Examination Period)||2, 3, 4.|
- * Assessment timing is indicative of the week that the assessment is due or begins (where conducted over multiple weeks), and is based on the standard University academic calendar
- C = Students must reach a level of competency to successfully complete this assessment.
|High Distinction||85-100||Outstanding or exemplary performance in the following areas: interpretative ability; intellectual initiative in response to questions; mastery of the skills required by the subject, general levels of knowledge and analytic ability or clear thinking.|
|Distinction||75-84||Usually awarded to students whose performance goes well beyond the minimum requirements set for tasks required in assessment, and who perform well in most of the above areas.|
|Credit||65-74||Usually awarded to students whose performance is considered to go beyond the minimum requirements for work set for assessment. Assessable work is typically characterised by a strong performance in some of the capacities listed above.|
|Pass||50-64||Usually awarded to students whose performance meets the requirements set for work provided for assessment.|
|Fail||0-49||Usually awarded to students whose performance is not considered to meet the minimum requirements set for particular tasks. The fail grade may be a result of insufficient preparation, of inattention to assignment guidelines or lack of academic ability. A frequent cause of failure is lack of attention to subject or assignment guidelines.|
For the purposes of quality assurance, Bond University conducts an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.
Students must check the [email protected] subject site for detailed assessment information and submission procedures.
Policy on late submission and extensions
A late penalty will be applied to all overdue assessment tasks unless an extension is granted by the subject coordinator. The standard penalty will be 10% of marks awarded to that assessment per day late with no assessment to be accepted seven days after the due date. Where a student is granted an extension, the penalty of 10% per day late starts from the new due date.
Policy on plagiarism
University’s Academic Integrity Policy defines plagiarism as the act of misrepresenting as one’s own original work: another’s ideas, interpretations, words, or creative works; and/or one’s own previous ideas, interpretations, words, or creative work without acknowledging that it was used previously (i.e., self-plagiarism). The University considers the act of plagiarising to be a breach of the Student Conduct Code and, therefore, subject to the Discipline Regulations which provide for a range of penalties including the reduction of marks or grades, fines and suspension from the University.
Feedback on assessment
Feedback on assessment will be provided to students within two weeks of the assessment submission due date, as per the Assessment Policy.
If you have a disability, illness, injury or health condition that impacts your capacity to complete studies, exams or assessment tasks, it is important you let us know your special requirements, early in the semester. Students will need to make an application for support and submit it with recent, comprehensive documentation at an appointment with a Disability Officer. Students with a disability are encouraged to contact the Disability Office at the earliest possible time, to meet staff and learn about the services available to meet your specific needs. Please note that late notification or failure to disclose your disability can be to your disadvantage as the University cannot guarantee support under such circumstances.
Additional subject information
There are two options for gaining an exemption for Parts IIA and IIB. Option 1 requires a minimum mark of 65% in each of three subjects (i.e., ACSC71-400 Actuarial Control Cycle 1, ACSC71-401 Actuarial Control Cycle 2 and ACSC71-402 Investments and Asset Modelling) AND a 75% average mark across all three of these subjects. Option 2 requires a minimum mark of 65% in each of the two subjects (i.e., ACSC71-400 Actuarial Control Cycle 1, and ACSC71-401 Actuarial Control Cycle 2), AND a 75% average mark across both of these subjects AND Pass the Actuarial Institute’s Investment Bridging course.
An overview of the method of Actuarial Control Cycle and review of the key elements of Actuarial Control Cycle 1.
The quality of actuarial work depends on the quality of data and assumptions used and various constraints such as time, resources and the amount of relevant data.
The need for capital in any business endeavour is considered. Methods for measuring and managing capital to achieve business objectives are also explored.
Different methods of valuing liabilities affect the emergence of profits in different ways. These methods are compared and their application to different situations is explored.
Application of the Actuarial Control Cycle to the pricing process is discussed in detail.
The three views of solvency. Why is it important to maintain solvency? The government regulations on solvency are also discussed.
Explores the relationship between profit pattern and valuation basis.
Examines the comparison of actual versus expected experience to complete the feedback loop of the Actuarial Control Cycle. The data collection requirements to support this process are also considered.
Approaches to responding to actual experience and the outcomes of the feedback process are considered.
The management of assets and the appropriate consideration of premiums and claims is examined in detail.