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 |
AKB5138 | Pricing Principles in Non-Life Insurance | Spring | 3 | 0 | 3 | 12 |
This catalog is for information purposes. Course status is determined by the relevant department at the beginning of semester. |
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: | To invite guest lecturers to discuss market applications. |
Course Objectives: | The objective of the course is to provide a background on the basic property/casualty insurance ratemaking concepts and techniques. |
The students who have succeeded in this course; The student that completes the course will know about quantitative analyses as well as practical considerations in the ratemaking process. |
Overview of P&C insurance ratemaking, discussion of ratemaking data, insurance exposure and exposure bases, definition of premium, losses, estimation of future losses, loss reserving techniques and loss adjustment expenses, testing for rate adequacy , classification ratemaking techniques, credibility procedures used in ratemaking. |
Week | Subject | Related Preparation |
1) | Introduction: rating manuals, basic insurance terms, basic insurance ratios, examples of rating manuals. | |
2) | Ratemaking data: policy, claim, accounting data. Data aggregation: calender year, accident year, policy year, report year. External data. | |
3) | Exposures:criteria for exposure bases, methods of aggregation for annual terms, examples | |
4) | Exposures cont’d. Calculation for blocks of exposure, exposure trend. Aggregation methods for calculating premium. Written premium, earned premium, unearned premium, inforce premium. | |
5) | Adjustments to premium, trending. | |
6) | Losses: definitions, loss data aggregation, common loss ratios. Catastrophic losses.Loss trend and loss development factors. | |
7) | Loss development factors cont’d.. On level factors. | |
8) | Expenses and profit. Underwriting expense method, trending expenses, reinsurance costs. | |
9) | Ratemaking: pure premium method, loss ratio method, comparisons. | |
10) | Risk Classification. | |
11) | Loss reserving, incurred but not reported losses. Basic reserving techniques. | |
12) | Reserving techniques cont’d. | |
13) | Introduction to credibility theory.lassical credibility, full credibility, partial credibility. | |
14) | Credibility theory continued. Solution of a complete example. | |
15) | Final exam. | |
16) | Final exam. |
Course Notes / Textbooks: | Werner G., Modlin, C., Basic Ratemaking, Casualty Actuarial Society. McClenahan,C., Ratemaking, Casualty Actuarial Society, www.casact.org/admissions/syllabus/ch3.pdf |
References: | Derste gerektikçe yeni çıkan şartname ve uygulamalara göre okumalar verilecektir. Readings based on new rules and regulations shall be given in class if need arises. |
Semester Requirements | Number of Activities | Level of Contribution |
Homework Assignments | 4 | % 10 |
Presentation | 1 | % 15 |
Midterms | 1 | % 35 |
Final | 1 | % 40 |
Total | % 100 | |
PERCENTAGE OF SEMESTER WORK | % 60 | |
PERCENTAGE OF FINAL WORK | % 40 | |
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 | 20 | 20 |
Homework Assignments | 4 | 9 | 36 |
Midterms | 1 | 16 | 16 |
Final | 1 | 24 | 24 |
Total Workload | 194 |
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. | 4 |
2) | Will know about risks and ways to manage risk. | 3 |
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. | 5 |
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. | 4 |
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.. | 3 |
8) | Will be able to apply and make the necessary adaptation to all new rules and regulations. | 5 |