| MATHEMATICS (TURKISH, PHD) | |||||
| PhD | TR-NQF-HE: Level 8 | QF-EHEA: Third Cycle | EQF-LLL: Level 8 | ||
| Course Code | Course Name | Semester | Theoretical | Practical | Credit | ECTS |
| MAT4059 | Life Insurance Mathematics | Fall | 3 | 0 | 3 | 6 |
| The course opens with the approval of the Department at the beginning of each semester |
| Language of instruction: | En |
| Type of course: | Departmental Elective |
| Course Level: | |
| Mode of Delivery: | Face to face |
| Course Coordinator : | Dr. Öğr. Üyesi TUĞCAN DEMİR |
| Course Lecturer(s): |
Prof. Dr. İRİNİ DİMİTRİYADİS |
| 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. |
|
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. |
| 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. |
| 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 | ||
| Course Notes: | 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. |
| Semester Requirements | Number of Activities | Level of Contribution |
| Attendance | % 0 | |
| Laboratory | % 0 | |
| Application | % 0 | |
| Field Work | % 0 | |
| Special Course Internship (Work Placement) | % 0 | |
| Quizzes | 2 | % 10 |
| Homework Assignments | % 0 | |
| Presentation | % 0 | |
| Project | % 0 | |
| Seminar | % 0 | |
| Midterms | 2 | % 50 |
| 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 | 2 | 0 | 0 |
| Presentations / Seminar | 1 | 3 | 3 |
| Project | 1 | 10 | 10 |
| Homework Assignments | 3 | 4 | 12 |
| Quizzes | 0 | 0 | 0 |
| Preliminary Jury | 0 | ||
| Midterms | 2 | 8 | 16 |
| Paper Submission | 0 | ||
| Jury | 0 | ||
| Final | 1 | 17 | 17 |
| Total Workload | 100 | ||
| No Effect | 1 Lowest | 2 Low | 3 Average | 4 High | 5 Highest |
| Program Outcomes | Level of Contribution |