AKB5007 Life Insurance Mathematics IIBahçeşehir UniversityDegree Programs APPLIED MATHEMATICS (TURKISH, NON-THESIS)General Information For StudentsDiploma SupplementErasmus Policy StatementNational QualificationsBologna Commission
APPLIED MATHEMATICS (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
AKB5007 Life Insurance Mathematics II Fall 3 0 3 12
This catalog is for information purposes. Course status is determined by the relevant department at the beginning of semester.

Basic information

Language of instruction: Turkish
Type of course: Departmental Elective
Course Level:
Mode of Delivery: Face to face
Course Coordinator : Dr. Öğr. Üyesi BAHAR KÖSEOĞLU
Recommended Optional Program Components: The use of Excel spread sheets.
Course Objectives: To carry premium and reserve calculations for multiple life and multiple decrement life products, to develop stochastic models for life products, to be able to price non-traditional products and carry tests of profitability, calculate gross premiums and gross premium reserves, have a basic idea about pension plans.

Learning Outcomes

The students who have succeeded in this course;
The students who complete the course will have

1. an understanding of life contingency concepts for both multiple lives and multiple decrements,

2. will be able to price non-traditional life products

3. will be able to evaluate profitability of products.

4. will have a basic idea about pension plans and pension annuites.

Course Content

Multiple-life tables, premium calculation of multiple life products, modelling life functions as random variables, non-traditional life products, reversionary annuities and unit linked products, multiple decrement tables, Markov chain models,calculation of reserves and profitability, gross premiums and gross premium reserves, other consumer benefits, basics of pension plans.

Weekly Detailed Course Contents

Week Subject Related Preparation
1) Mortality tables, joint life functions.
2) Define death and survival functions as random variables. Multiple life probabilities and moments.
3) Calculate present value of benefits and present value of premium random variables based on a single decrement on single life models.
4) Calculate present value of benefits and present value of premium random variables based on a single decrement on multiple life models.
5) Types of life and annuity products: eg. reversionary annuities, unit linked products.
6) Pension annuities and alternative withdrawl plans.
7) Reserves, withdrawls, profit testing.
8) Reserves, profit testing for non-traditional insurances.
9) Models that consider expense cash flows; gross premiums and gross premium reserves.
10) Multiple decrement tables. Markov chain models.
11) Evaluation of mean present values using multiple decrement tables.
12) Other consumer benefits.
13) Introduction to pension planning. Basics of public and employer sponsored pension plans.
14) Pension plans cont'd. Personal pension plans.
15) Final exam.
16) Final exam.

Sources

Course Notes / Textbooks: 1. Life Insurance Mathematics, Gerber H.U. Springer, Zürich, 1997

2. Actuarial Mathematics For Life Contingent Risks, Dickson D.C. M.,Hardy M. R., Waters H.R., Cambridge Univ. Press.2009.

3. Actuarial Mathematics. Bowers N.L., Gerber H.U., Hıckman J.C., Jones D.A. ve Nesbıtt,C. J., SOA 1997.

4., "Modern Actuarial Theory and Practice",Booth P. 1997, Chapman & Hall, /CRC
References: Journal articles and working papers.

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 1 20 20
Final 1 26 26
Total Workload 200

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) Ability to assimilate mathematic related concepts and associate these concepts with each other.
2) Ability to gain qualifications based on basic mathematical skills, problem solving, reasoning, association and generalization.
3) Be able to organize events, for the development of critical and creative thinking and problem solving skills, by using appropriate methods and techniques.
4) Ability to make individual and team work on issues related to working and social life.
5) Ability to transfer ideas and suggestions, related to topics about his/her field of interest, written and verball.
6) Ability to use mathematical knowledge in technology.
7) To apply mathematical principles to real world problems.
8) Ability to use the approaches and knowledge of other disciplines in Mathematics.
9) Be able to set up and develope a solution method for a problem in mathematics independently, be able to solve and evaluate the results and to apply them if necessary.
10) To apply mathematical principles to real world problems.
11) To be able to conduct a research either as an individual or as a team member, and to be effective in each related step of the project, to take role in the decision process, to plan and manage the project by using time effectively.
12) To be able to acquire necessary information and to make modeling in any field that mathematics is used and to improve herself/himself.