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Contents

Course Code

IAM 582 (9700582)

Credit

(3-0) 3

Prerequisites

Consent of instructors

Content/Aims

Introduce the mathematical models used in life insurance with emphasis on the probabilistic approach. The theory of compound interest: effective and nominal interest rates, present values, annuities. Survival distributions and life tables. Life insurance : benefits, endowments. Life annuities. Benefit premiums. Benefit reserves.

Learning Outcomes

Suggested Textbooks/Resources

  • Hans U. Berger, "Life Insurance Mathematics", 3rd edition, 1997. Springer.
  • P. Booth et al "Modern Actuarial Theory and Practice", 1997, Chapman & Hall, / CRC.
  • H.L. Bowers et al “Actuarial Mathematics” 1997, The Society of Actuaries.

Outline

  • The mathematics of compound interest, (3 weeks)
  • The lifetime model and life tables, (3 weeks)
  • Life insurance, (2 weeks)
  • Life annuities, (2 weeks)
  • Net premiums, (2 weeks)
  • Net premiums reserves, (2 weeks)