Actuarial Modelling 2

Module code: MA7405

This module will provide a grounding in the mathematical techniques which can be used to model and value cashflows dependent on death, survival, or other uncertain risks, such as life assurances and annuities. These policies are the products that actuaries traditionally work with. Mortality models are important as they form the basis for the pricing of these contracts. The module combines the annuity notation with the concepts of mortality to develop some useful actuarial notations and to describe, interpret and discuss mathematical techniques used to model and value cashflows which are contingent on mortality, survival, or other risks. The module also develops the idea of joint-life contracts and the methods of product pricing and profit testing.