AKB5003 Life Insurance Mathematics IBahçeşehir UniversityDegree Programs ACTUARIAL SCIENCE (TURKISH, NON-THESIS)General Information For StudentsDiploma SupplementErasmus Policy StatementNational QualificationsBologna Commission
ACTUARIAL SCIENCE (TURKISH, NON-THESIS)
Master TR-NQF-HE: Level 7 QF-EHEA: Second Cycle EQF-LLL: Level 7

Course Introduction and Application Information

Course Code Course Name Semester Theoretical Practical Credit ECTS
AKB5003 Life Insurance Mathematics I Spring 3 0 3 8

Basic information

Language of instruction: Turkish
Type of course: Must Course
Course Level:
Mode of Delivery: Face to face
Course Coordinator : Dr. Öğr. Üyesi BAHAR KÖSEOĞLU
Recommended Optional Program Components: The use of Excel spreadsheets (or the use of R) for the calculations.
Course Objectives: The purpose of the course is to equip the student with the
mathematical techniques required by life insurance companies
and to provide a general understanding of life insurance
products and their role in financial life planning.

Learning Outcomes

The students who have succeeded in this course;
Students will gain an understanding of survival models and
life insurance products and will be able to make computations
for their pricing and reserving. They will grasp the effect of
mortality, interest and expense assumptions in the
profitability of the company, and will look at the design of
special products to meet emerging needs(longevity for
example).

Course Content

Review of theory of interest, survival models and mortality
tables, life annuity and life insurance net premium calculations, gross
premiums , reserves and non forfeiture benefits, scenario analyses and profit testing.

Weekly Detailed Course Contents

Week Subject Related Preparation
1) Review of probability, mortality and survival tables.
2) Construction of mortality tables, expected lifetime.
3) Review of theory of interest. Annuities certain,annuities due and immediate,perpetuities.
4) Life contingent payments. Life annuities, whole life, term life and deferred annuities.
5) Increasing benefit annuities, annuities paid more frequently than yearly.
6) Whole life insurance, net premiums for life insurance products.
7) Annual premiums, term insurance, endowment insurance,
8) Deferred insurance,accumulated cost of insurance, increasing benefit insurance, return of premium policy.
9) Reserves, retrospective and prospective reserves.
10) Equivalence of the retrospective and prospective definitions of reserevs.Fackler's Accumulation Formula.
11) Non forfeiture options and benefits.
12) Gross premiums.
13) Mortality, interest and expense gain/loss. Scenario analyses.
14) General review and project presentations.

Sources

Course Notes / Textbooks: 1.Life contingencies. Neill, A. Heinemann, 1977. 452 pages.
ISBN: 0434914401

2.Modern actuarial theory and practice. Booth, P. M.;
Chadburn, R. G.; Cooper, D. R. et al. Chapman & Hall, 1999.
716 pages. ISBN: 0849303885

3. The analysis of mortality and other actuarial statistics.
Benjamin, B.; Pollard, J. H. 3rd ed. Institute and Faculty
of Actuaries, 1993. 519 pages. ISBN: 0901066265
4. Actuarial mathematics. Bowers, N. L.; Gerber, H. U.;
Hickman, J. C. et al. 2nd ed.
References: 1.Life assurance mathematics, Scott, W.F. Herriot-Watt University 1999.

2.Strategic Financial Planning over the Lifecycle , Narat Charupat, Hieaxiong, Huang, Moshe A. Milevsky, Cambridge U.P, Mach 23,2013.

Evaluation System

Semester Requirements Number of Activities Level of Contribution
Homework Assignments 4 % 10
Presentation 1 % 10
Midterms 1 % 35
Final 1 % 45
Total % 100
PERCENTAGE OF SEMESTER WORK % 55
PERCENTAGE OF FINAL WORK % 45
Total % 100

ECTS / Workload Table

Activities Number of Activities Duration (Hours) Workload
Course Hours 14 3 42
Study Hours Out of Class 14 4 56
Presentations / Seminar 1 16 16
Homework Assignments 4 10 40
Midterms 2 20 40
Final 1 26 26
Total Workload 220

Contribution of Learning Outcomes to Programme Outcomes

No Effect 1 Lowest 2 Low 3 Average 4 High 5 Highest
           
Program Outcomes Level of Contribution
1) Acquire the quantitative skills to become an actuary. 5
2) Will know about risks and ways to manage risk. 4
3) Will know about financial planning and its role in actuarial management. 4
4) Will be able to design new products and carry profitability tests and scenario analyses. 3
5) Besides gaining competence in theoretical subjects, the graduate will also be aware of practical issues and applications through lecturers and instructors who have market experience. 3
6) Will be able to follow all innovations and carry on research on the particular area. 4
7) Will share information with colleagues and will use it for project development..
8) Will be able to apply and make the necessary adaptation to all new rules and regulations.