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 | Fall | 3 | 0 | 3 | 8 |
The course opens with the approval of the Department at the beginning of each semester |
Language of instruction: | Tr |
Type of course: | Departmental Elective |
Course Level: | |
Mode of Delivery: | Face to face |
Course Coordinator : | Dr. Öğr. Üyesi BAHAR KÖSEOĞLU |
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: | 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 |
Attendance | % 0 | |
Laboratory | % 0 | |
Application | % 0 | |
Field Work | % 0 | |
Special Course Internship (Work Placement) | % 0 | |
Quizzes | % 0 | |
Homework Assignments | 4 | % 10 |
Presentation | 1 | % 15 |
Project | % 0 | |
Seminar | % 0 | |
Midterms | 1 | % 35 |
Preliminary Jury | % 0 | |
Final | 1 | % 40 |
Paper Submission | % 0 | |
Jury | % 0 | |
Bütünleme | % 0 | |
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 |
Laboratory | 0 | 0 | 0 |
Application | 0 | 0 | 0 |
Special Course Internship (Work Placement) | 0 | 0 | 0 |
Field Work | 0 | 0 | 0 |
Study Hours Out of Class | 14 | 4 | 56 |
Presentations / Seminar | 1 | 20 | 20 |
Project | 0 | 0 | 0 |
Homework Assignments | 4 | 9 | 36 |
Quizzes | 0 | 0 | 0 |
Preliminary Jury | 0 | ||
Midterms | 1 | 16 | 16 |
Paper Submission | 0 | ||
Jury | 0 | ||
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. | |
2) | Will know about risks and ways to manage risk. | |
3) | Will know about financial planning and its role in actuarial management. | |
4) | Will be able to design new products and carry profitability tests and scenario analyses. | |
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. | |
6) | Will be able to follow all innovations and carry on research on the particular area. | |
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. |