ACTUARIAL SCIENCE (TURKISH, NON-THESIS) | |||||
Master | TR-NQF-HE: Level 7 | QF-EHEA: Second Cycle | EQF-LLL: Level 7 |
Course Code | Course Name | Semester | Theoretical | Practical | Credit | ECTS |
AKB5003 | Life Insurance Mathematics I | Spring | 3 | 0 | 3 | 8 |
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. |
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). |
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. |
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. |
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. |
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 |
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 |
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. |