Actuarial mathematics 1 | Faculty of Technical Sciences

Subject: Actuarial mathematics 1 (17.0M546)

Type of studies	Title
Master Academic Studies	Mathematics in Engineering (Year: 2, Semester: Summer)

General information:

Category	Professional-applicative
Scientific or art field	Finansijska i aktuarska matematika Teorijska i primenjena matematika
ECTS	6

Gaining students the necessary theoretical knowledge from actuarial mathematics, provides ? grounding for actuarial modeling, focusing on deterministic models and their application to insurance products. The subject includes the theory and application on real data using the appropriate actuarial tools.

Students gain knowledge to understand the basic principles of actuarial modeling, interest rate theory, and mathematical techniques used to model and evaluate cash flows as well as those which are dependent on death, survival, or other uncertain risks.

Data and basics of modelling. Theory of interest rates.The nature of random events. Probability of life and death (single decrement models; multiple decrement and multiple life models). Estimation of distribution of frequency, intensity and survival function. Mortality tables and models. Survival models. Risk models (individual and collective). Annuities. Insurance of fixed and variable capital. Insurance by annual constant and variable premium. Insurance with premium return. Net and gross premiums. Methods of calculating reserves. Actuarial methods for evaluating insurance contracts. Measuring financial effects of risk management techniques. Actuarial methods for monitoring results and maintaining financial stability (provisioning, financial reporting, reinsurance, profitability analysis, financial conditions analysis). Costs of options and guarantees in life insurance contracts. Insurance as stochastic value.

Lectures. Consultations. Assesment: combination of a computer based modelling assignment with actuarila tools and optional tasks with additional points. The part of the material (that makes logical unit) is seminar paper and obligatory orally presented. Part of the materials that makes logical unit can be taken as partial exam that are part of the exam. Partial exam is in written form. The oral part of the final exam is eliminatory.

Authors	Title	Year	Publisher	Language
Newton L. Bowers et al.	Actuarial mathematics	1997	Society of Actuaries	English

Course activity	Pre-examination	Obligations	Number of points
Project task	Yes	Yes	40.00
Lecture attendance	Yes	Yes	5.00
Homework	Yes	No	0.00
Term paper	Yes	No	0.00
Written part of the exam - tasks and theory	No	Yes	40.00
Oral part of the exam	No	Yes	15.00