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Actuarial Statistics [1]

Paper Code: 
24STT324(B)
Credits: 
6
Contact Hours: 
90.00
Max. Marks: 
100.00
Objective: 

This paper aims at teaching the students to deal with asses risk in insurance and finance using statistical methods.

 

Course Outcomes: 

Course

Course Outcomes

Learning and teaching strategies

Assessment Strategies

Course Code

Course Title

24STT324(B)

Actuarial Statistics

(Theory)

CO 91: Evaluate actuarial science's role in the insurance business and apply statistical methods in modeling short-term risks.

CO 92: Analyze Survival distribution to assess life expectancy and mortality risk.

CO 93: Examine actuarial present value benefits in life insurance products.

CO 94: Explore annuity concepts along with commutation functions and recursion for annuity calculations

CO 95: Evaluate multiple decrement tables and premium to assess benefits and risks associated with insurance policies.

CO 96: Contribute effectively in course-specific interaction.

Approach in teaching: 

Interactive Lectures, 

Group Discussion, 

Classroom Assignment,

Problem Solving Sessions.

 

Learning activities for the students:

Assignments,

Seminar,

Presentation,

Subject based  Activities.

Classroom Quiz,

Assignments,

Class Test,

Individual Presentation.

 

18.00
Unit I: 
Introduction to Actuarial Science and Insurance Business

Actuarial Science: Concept, scope, Introduction to insurance business, concept of risk, role of statistics in insurance. Risk models for short term: expected value principle, notation of utility risk model for short term.

 

18.00
Unit II: 
Survival Distribution and Life Tables

Survival Distribution: Future life time distribution and life table, future life time random variable, curate future life time, complete life table, assumption of fraction ages, force of mortality.

 

18.00
Unit III: 
Life Insurance Products and Benefits

Life Insurance: Actuarial present value benefit in life insurance product, compound interest, discount factor, benefit payable at the moment of death, relation between A and pure endowment. Sickness benefit, disability benefit, widows pension, benefit dependent on marriage.

 

18.00
Unit IV: 
Annuity Products and Calculations

Annuity: Introduction, life annuity: single payment, continuous life annuity, discrete life annuity, life annuity with monthly payments, commutation function, varying annuity recursion, complete annuity: immediate and apportionable annuities- due.

 

18.00
Unit V: 
Multiple Decrement Tables and Premium Calculations

Multiple decrement tables, force of decrement, construction of decrement table. Premium: continuous and discrete premium, true monthly payment premium, apportionable premium, commutation functions, accumulation type benefits.

 

Essential Readings: 
  • Dickson, C.M.D. (2005): Insurance Risk and Ruin(International Series On Acturial Science), Cambridge University Press
  • Bowers, N.L., Gerber, H.U., Hickman, J.C., Jones, D.A., Nesbitt, C.J.(1997): Actuarial Mathematics, Society of Actuaries, Itasca, Illinois, U.S.A.

 

ESSENTIAL READINGS:

  • Atkinson, M.E. & Dickson, D.C.M. (2011). An Introduction to Actuarial Studies, Elgar Publ, second edition.
  • Daykin, C.D, Pentikainen, T & Pesonen, M. (1994). Practical Risk Theory for Actuaries, Chapman & Hall.

 

e-RESOURCES:

 

JOURNALS:

  • Sankhya The Indian Journal of Statistics, Indian Statistical Institute
  • Aligarh Journal of Statistics, Department of Statistics and Operations Research, Aligarh Muslim University
  • Afrika Statistika, Saint-Louis Senega University
  • International Journal of Statistics and Reliability Engineering, Indian Association for Reliability and Statistic
  • Journal of the Indian Society for Probability and Statistics, Indian Society for Probability and Statistics
  • Journal of the Indian Statistical Association, Indian Statistical Association
  • Statistica, Department of Statistical Sciences Paolo Fortunato, University of Bologna
  • Statistics and Applications, Society of Statistics, Computer and Applications
  • Stochastic Modeling and Applications, MUK Publications and Distributions

 

Academic Year: 
2024-2025 [5]

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Source URL: https://www.statistics.iisuniv.ac.in/courses/subjects/actuarial-statistics-5

Links:
[1] https://www.statistics.iisuniv.ac.in/courses/subjects/actuarial-statistics-5
[2] https://epgp.inflibnet.ac.in/
[3] https://www.academia.edu/
[4] https://www.slideshare.net/
[5] https://www.statistics.iisuniv.ac.in/academic-year/2024-2025