MATHEMATICS
Bachelor	TR-NQF-HE: Level 6	QF-EHEA: First Cycle	EQF-LLL: Level 6

Course Introduction and Application Information

Course Code	Course Name	Semester	Theoretical	Practical	Credit	ECTS
MAT4059	Life Insurance Mathematics	Fall	3	0	3	6

This catalog is for information purposes. Course status is determined by the relevant department at the beginning of semester.

Basic information

Language of instruction:	English
Type of course:	Departmental Elective
Course Level:	Bachelor’s Degree (First Cycle)
Mode of Delivery:	Face to face
Course Coordinator :
Course Lecturer(s):	Prof. Dr. İRİNİ DİMİTRİYADİS
Recommended Optional Program Components:	The student will develop Excel skills to formulate the material presented in class and will do research on the internet to find out about different products in the world market.
Course Objectives:	The purpose of the course is to give the basics of lifelong financial planning, 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 lifelong financial planning.

Learning Outcomes

The students who have succeeded in this course;
Students will gain an understanding of lifelong financial management, will grasp 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). They will be able to compare financial and life products and understand their advantages and disadvantages.

Course Content

Review of theory of interest, survival models and mortality tables, life annuity and life insurance net premium calculations, commutation functions, reserve calculations, prospective and retrospective reserves, gross premiums, mortality, interest and expense gains and losses, special products.

Weekly Detailed Course Contents

Week	Subject	Related Preparation
1)	Genaral introduction on the role of life products in the financial planning of present and future lifetime.
2)	Definition of simple and compound interest. Calculation of present value and accumulated value. Equivalence between types of interest.
3)	Basic annuities certain, annuities due and immediate, perpetuities.
4)	Introduction to survival distributions and life tables. Select and ultimate tables. Basic mortality probabilities and mortality functions.
5)	Basic life insurance and life annuity products.Definition of whole and term life insurance, endowment insurance, annuity due, annuity immediate and deferred annuities.
6)	Net premiums for life insurance and annuity products.
7)	Accumulated value of insurance and introduction to commutation functions.
8)	Representing net and yearly premiums in commutation functions.
9)	Pricing special insurance products. Return of premium policies, family benefit policies, increasing benefits.
10)	Net premium reserves. Calculation of reserves for different products in Excel.
11)	Prospective and retrospective reserves, Fackler’s accumulation formula.
12)	Non forfeiture options and benefits.
13)	Gross premiums.
14)	Mortality, interest and expense gain/loss. Scenario analyses

Sources

Course Notes / Textbooks:

Life contingencies. Neill, A. Heinemann, 1977. 452 pages. ISBN: 0434914401

References:

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

Life assurance mathematics. Scott, W. F. Heriot-Watt University, 1999. 343 pages.

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

-Actuarial mathematics. Bowers, N. L.; Gerber, H. U.; Hickman, J. C. et al. 2nd ed.

Evaluation System

Semester Requirements	Number of Activities	Level of Contribution
Quizzes	2	% 10
Midterms	2	% 50
Final	1	% 40
Total		% 100
PERCENTAGE OF SEMESTER WORK		% 60
PERCENTAGE OF FINAL WORK		% 40
Total		% 100

ECTS / Workload Table

Activities	Number of Activities	Duration (Hours)	Workload
Course Hours	14	3	42
Study Hours Out of Class	2	0	0
Presentations / Seminar	1	3	3
Project	1	10	10
Homework Assignments	3	4	12
Midterms	2	8	16
Final	1	17	17
Total Workload			100

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)	To have a grasp of basic mathematics, applied mathematics and theories and applications in Mathematics	5
2)	To be able to understand and assess mathematical proofs and construct appropriate proofs of their own and also define and analyze problems and to find solutions based on scientific methods,	5
3)	To be able to apply mathematics in real life with interdisciplinary approach and to discover their potentials,	4
4)	To be able to acquire necessary information and to make modeling in any field that mathematics is used and to improve herself/himself,	4
5)	To be able to tell theoretical and technical information easily to both experts in detail and non-experts in basic and comprehensible way,	4
6)	To be familiar with computer programs used in the fields of mathematics and to be able to use at least one of them effectively at the European Computer Driving Licence Advanced Level,	4
7)	To be able to behave in accordance with social, scientific and ethical values in each step of the projects involved and to be able to introduce and apply projects in terms of civic engagement,	3
8)	To be able to evaluate all processes effectively and to have enough awareness about quality management by being conscious and having intellectual background in the universal sense,	4
9)	By having a way of abstract thinking, to be able to connect concrete events and to transfer solutions, to be able to design experiments, collect data, and analyze results by scientific methods and to interfere,	3
10)	To be able to continue lifelong learning by renewing the knowledge, the abilities and the competencies which have been developed during the program, and being conscious about lifelong learning,	3
11)	To be able to adapt and transfer the knowledge gained in the areas of mathematics ; such as algebra, analysis, number theory, mathematical logic, geometry and topology to the level of secondary school,	4
12)	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.	4