ACTUARIAL SCIENCE (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
AKB5138 Pricing Principles in Non-Life Insurance Spring 3 0 3 8
The course opens with the approval of the Department at the beginning of each semester

Basic information

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.

Learning Outputs

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.

Course Content

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.

Weekly Detailed Course Contents

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.

Sources

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.

Evaluation System

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

ECTS / Workload Table

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

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) 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.