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.
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
- Analysing the Simulation Output
7: Modelling a Life Insurance Company 2
- Adjustments to Reserves
- Additional Scenarios