Module manager: TBC
Email: TBC
Taught: Semester 2 (Jan to Jun) View Timetable
Year running 2026/27
MATH3503 Actuarial Mathematics 1
| MATH3503 | Actuarial Mathematics 1 |
MATH3520 Actuarial Mathematics 2
This module is not approved as a discovery module
The module continues the theme of life-contingent risks . In this module students will study advanced modelling of life insurance and annuity policies with particular emphasis on fixed and variable benefit contracts, annuities and assurances involving two lives and evaluation of profitability. The module will also cover insurance policies with multiple decrements and profit testing for such policies.
The module introduces a wide range of topics in actuarial mathematics. The aim is to equip students with knowledge on premium and profit evaluation of different types of insurance contracts. The students will study premium calculations using equivalence principle and portfolio percentile principle, students will learn policy values and reserves of an insurance business in the context of single life and multiple lives. This will be achieved by a structured series of lectures and consolidated by interactive tutorials.
On successful completion of the module students will be able to: 1. Evaluate premiums using different methods. 2. Understand profit and loss for a portfolio of policies. 3. Understand policy values and be able to compute these. 4. Understand mortality probabilities and benefits in the context of two lives and be able to calculate these for some special contracts. 5. Apply the theory of continuous-time Markov chains to understand transition probabilities and associated insurance contracts in multiple state models. 6. Compute policy premiums/values for multiple state models in the discrete time case. 7. Appreciate the differences between multiple and single decrement models and compute mortality probabilities in some special cases. 8. Determine premiums or reserves using profit-testing methods for different policy types.
1. Calculation of net and gross premiums and policy values for standard insurance policies. 2. Recursive relations for policy values and prospective/retrospective methods for policy values. 3. Portfolio percentile principle to calculate premiums. 4. Multiple life models for two lives. 5. Multiple-state Markov models in discrete and continuous time to model insurance policies. 6. Multiple decrement models. 7. Profit testing for standard and unit linked policies.
| Delivery type | Number | Length hours | Student hours |
|---|---|---|---|
| Lecture | 44 | 1 | 44 |
| Private study hours | 156 | ||
| Total Contact hours | 44 | ||
| Total hours (100hr per 10 credits) | 200 | ||
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Last updated: 12/05/2026
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