University of Galway

Course Module Information

Course Modules

Semester 1 | Credits: 5

This module covers topics in Financial Mathematics (more specifically Actuarial Mathematics) that follow on from a more introductory module in this area. The material presented includes: defining and analysing insurance company contracts including describing and calculating their premiums and reserves. Projecting and analysing future expected cashflows for some insurance company products incorporating multi-decrement models as appropriate. Students also solve problems on this material using excel.
(Language of instruction: English)

Learning Outcomes
  1. Define various assurance and annuity contracts.
  2. Develop formulae for the means and variances of the payments under various assurance and annuity contracts, assuming constant deterministic interest rate.
  3. Define the gross random future loss under an insurance contract, and state the principle of equivalence.
  4. Describe and calculate gross premiums and reserves of assurance and annuity contracts.
  5. Define and calculate, for a single policy or a portfolio of policies (as appropriate): death strain at risk; expected death strain; actual death strain; mortality profit for policies with death benefits payable immediately on death or at the end of the year of death; for policies paying annuity benefits at the start of the year or on survival to the end of the year; and for policies where single or non-single premiums are payable.
  6. Project expected future cashflows for whole life, endowment and term assurances, annuities, unit-linked contracts, and conventional/unitised with-profits contracts, incorporating multiple decrement models as appropriate.
  7. Show how, for unit-linked contracts, non-unit reserves can be established to eliminate (zeroise) future negative cashflows, using a profit test model.
  8. Use Excel to solve practical problems.
Assessments
  • Written Assessment (70%)
  • Continuous Assessment (30%)
Teachers
The above information outlines module MA3992: "Actuarial mathematics: Life contingencies 1, pricing and reserving" and is valid from 2021 onwards.
Note: Module offerings and details may be subject to change.