Course

Unit I

Insurance Business – Introduction, Insurance Companies as Business Organizations, Concept of Risk; Future Lifetime Distribution and Life Tables – Future Lifetime Random Variable, Curtate Future Lifetime, Life Table.

Unit II

Actuarial Present Values or Benefit in Life Insurance Products – Compound Interest and Discount Factor, Benefit Payable at the Moment of Death, Benefit Payable at the End of Year of Death, Relation between A and A .

Unit III

Annuities – Annuities Certain, Continuous Life Annuities, Discrete Life Annuities, Life Annuities with mthly Payments; Premiums – Loss at Issue Random Variable, Fully Continuous Premiums, Fully Discrete Premiums.

Unit IV

Reserves – Fully Continuous Reserves, Fully Discrete Reserves; Multiple Life Contracts – Joint Life Status, Last Survivor Status.

CO1: Explain the concept of survival models.
CO2: Assess the properties of a data set and to model real-life data for insurance and finance applications.
CO3: Use actuarial statistics techniques and its application in assessing probability models and data.
CO4: Understand and discuss the ethical dimensions and implications of the modelling introduced in the course.

Text Book

1. Deshmukh, S.R. (2009) Actuarial Statistics – An Introduction using R, University Press (India) Pvt Ltd., Hyderabad.

Reference Books

1. Promislow, S.D (2006) Fundamentals of Actuarial Mathematics, John Wiley, Chapters 2- 11 & 14.
2. Neill, A. (1977) Life Contingencies, Heinemann, London.
3. Newton L.Bowers, Jr, Hans U.Gerber, James C.Hickman, Donald A. Jones and Cecil J. Nesbitt (1997) Actuarial Mathematics, The Society of Actuaries.
4. King, G. Institute of Actuaries Text Book. Part 11, Second edition, Charles and Edwin Layton, London. 5. Donald D.W.A. (1970) Compound Interest and Annuities, Heinemann, London.