Introduction to Actuarial Science

Description

In this course, you will learn:

• The fundamentals of actuarial science are covered.
• calculating the value of a sequence of cash flows
• Adding unpredictability to cash flows as a result of investment and mortality.
• In Excel, run a Monte-Carlo simulation of uncertain cash flows (or an equivalent spreadsheet tool).
• Using actuarial approaches to forecast human life expectancy in life insurance.
• In finance, investments, banking, and insurance, actuarial science is applied in a variety of ways.

Syllabus:

1: Valuing Cash Flows

• Time Value of Money
• Present Value
• Accumulated Value
• Valuing Multiple Regular Payments 
   

2: Applications of Valuing Cash Flows

• Equations of Value
• Example – Annuity Certain
• Application in Spreadsheets
   

3: Analysis of State Transitions

• Introduction to State Transitions
• Two State Model (Active/Dead)
• Calculating Probabilities using the Two State Model 
   

4: The Life Table

• Introduction to the Life Table
• Calculating Probabilities using the Life Table 
   

5: Valuing Uncertain Cash Flows

• Expected Present Value
• Accumulated Value and Uncertainty
   

6: Modelling a Life Insurance Company 1

• The Life Insurance Company Scenario
• A Single Projection
• Simulations
• Analysing the Simulation Output
   

7: Modelling a Life Insurance Company 2

• Reserves
• Adjustments to Reserves
• Additional Scenarios

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