Contingencies - MAN00064H
Module summary
The module aims to provide a grounding in the traditional mathematical techniques which can be used to model and value cash flows dependent on death, survival, or other risks.
The module provides further opportunities for students to improve their analytical skills through rigorous mathematical reasoning.
Professional requirements
Institute and Faculty of Actuaries. Part of Subject CM1: Actuarial Mathematics
Module will run
Occurrence | Teaching period |
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A | Semester 2 2025-26 |
Module aims
The module aims to provide a grounding in modern actuarial models, theory and methods for life contingencies, focussing on the principles of modelling and valuing cash flows dependent on death, survival or other life contingent risks.
The module provides further opportunities for students to improve their analytical skills through rigorous mathematical reasoning.
Module learning outcomes
After successful completion the student is able to:
Subject content
• Define assurance and annuity benefits, derive expressions for and calculate means and variances of present values under such contracts;
• Derive and calculate net premiums and net premium reserves of insurance contracts;
• Derive and calculate gross premiums and reserves of assurance and annuity contracts;
• Define actuarial functions involving two lives and value related cashflows;
• Value cashflows contingent upon multiple events using multiple state models;
• Project contingent future cashflows for various products.
Academic and graduate skills
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Present analyses in a logical, rigorous and concise way
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Perform and demonstrate logical reasoning from assumptions to conclusion
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Critically assess the assumptions underlying analyses and conclusions
Module content
Syllabus:
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Assurance benefit contracts
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Life annuities
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Contracts with benefits contingent on several causes
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Multiple-life benefits
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Pricing
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Policy values
Indicative assessment
Task | % of module mark |
---|---|
Closed/in-person Exam (Centrally scheduled) | 70 |
Essay/coursework | 30 |
Special assessment rules
None
Indicative reassessment
Task | % of module mark |
---|---|
Closed/in-person Exam (Centrally scheduled) | 70 |
Essay/coursework | 30 |
Module feedback
Feedback will be given in accordance with the University Policy on feedback in the Guide to Assessment as well as in line with the School policy. A feed forward feedback on the overall cohort performance in the exam can be provided
Indicative reading
Dickson, D.C.M., Hardy, M., and Waters, H.R. (2020). Actuarial mathematics for life contingent risks. 3rd edition. Cambridge, UK : Cambridge University Press