units

ETC3530

Faculty of Business and Economics

Undergraduate - Unit

This unit entry is for students who completed this unit in 2014 only. For students planning to study the unit, please refer to the unit indexes in the the current edition of the Handbook. If you have any queries contact the managing faculty for your course or area of study.

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6 points, SCA Band 3, 0.125 EFTSL

Refer to the specific census and withdrawal dates for the semester(s) in which this unit is offered, or view unit timetables.

LevelUndergraduate
FacultyFaculty of Business and Economics
Organisational UnitDepartment of Econometrics and Business Statistics
OfferedClayton Second semester 2014 (Day)
Coordinator(s)Dr Colin O'Hare

Synopsis

The modelling and valuation of cash flows dependent on death, survival, or other uncertain risks.

Outcomes

The learning goals associated with this unit are to:

  1. actuarial mathematics and techniques developed in ETC2430 in relation to simple assurance and annuity contracts are developed further allowing for multiple decrement situations, and those involving competing risks. Practical issues arising in the actuarial management of life insurance and superannuation are addressed
  2. the calculation, using ultimate or select mortality, of net premiums and net premium reserves for increasing and decreasing benefits and annuities
  3. techniques are developed for the valuation of annuity and assurance products involving two lives, and the use of actuarial functions in that situation
  4. methods are developed which can be used to model cash flows contingent upon competing risks
  5. the technique of discounted emerging costs as used in profit tests, pricing assessments and reserving calculations for various insurance and pension products
  6. practical issues are addressed such as guarantees and options, risk classification and the effects of the pricing and reserving basis on the emergence of profit.

Assessment

Within semester assessment: 20%
Examination: 80%

Chief examiner(s)

Workload requirements

Minimum total expected workload equals 144 hours per semester

Prerequisites