27538 - Actuarial and Insurance Operations
Optional
5.3. Syllabus
LESSON 1 Fundamentals of actuarial mathematics.
In this lesson, the principles of insurance and the requirements for its further development are established. The concept of risk premium is presented, as well as the types of risks, the responses to risk, the main aim of actuarial mathematics, its economic, financial and stochastic fundamentals, and the idea of actuarial financial equivalence between insured and insurer.
PART I. LIFE INSURANCE OPERATIONS AND PENSION PLANS
LESSON 2 Actuarial actualization and capitalization processes.
The objective of this lesson is the calculation of the current actuarial values, given their random nature, the proposal of actuarial equivalencies and the calculation of the reserve of an operation. The actuarial values of annuity payments associated with survival are estimated. The main biometric concepts and the main commutation symbols are also presented.
Practical classes will begin after this lesson and will remain for the rest of the course.
LESSON 3 Life annuities with mthly payments (payments made more frequently than once a year)
The aim of the lesson is to understand the meaning of life annuities with payments made more frequently than once a year and which are the changes in actuarial basis that may be applied to the calculations involved. These actuarial values and fractionary annuities are calculated assuming constant periodic payments
LESSON 4 Life insurance operations
This lesson studies the concept of life insurance, its fundamental elements for evaluation, classification, usual terms and conditions, premium calculation, additional benefits and guaranteed values.
LESSON 5 Life insurance pricing
The main components of insurance premium are described. The main cases of life insurance contracts in case of death are analytically studied. Life insurance contracts in case of survival and mixed insurance contracts are also priced.
LESSON 6 Profit sources in life insurance industry
The contribution of mortality factors, surcharges and profitability/return factors in order to achieve profit in the insurance industry is studied. The concepts of contingency fund and distributable surpluses as well as the most common profit sharing systems are also described.
LESSON 7 Group insurance and social insurance
In this issue covers the concepts of collective, actuarial equivalence between rights and contributions (collective equivalence) and the importance of salary as an operating variable. The most important characteristics of social insurance are dealt and the most important group actuarial systems are explained.
LESSON 8 Pension plans and pension funds.
Individual pension plans, workplace pension plans and associated pension plans are considered in this lesson. Defined contribution plans and defined benefit plans are valued.
LESSON 9 Joint and survivor annuities. Disability.
In this lesson a wide range of operations based on joint and last survivor annuities is valued. In particular, widows´ and orphans´ annuities are calculated. Particular attention to the state of invalidity is provided, examining the specific information required to assess this contingency and using it in order to carry out the valuation.
PART II. GENERAL INSURANCE OPERATIONS
LESSON 10 General Insurance
Since the study of non-life insurance is far from life insurance, this lesson highlights the main differences between these two insurance types, as well as classifies the most common contingencies covered by general insurance and describes the most common concepts to be used in the assessment of general insurance operations.
LESSON 11 Distribution of the number of claims and the amount of a claim
This lesson explains the most common probability distributions in order to calculate the number of expected claims of a general insurance contract, considering or not the possible existence of a contagion effect. It also explains the most common probability distributions to compute the average amount of different types of claims.
LESSON 12 Pricing general insurance. Credibility theory
The aim of this chapter is to show the components of the premium of general insurance policies, the application of actuarial equivalence to non-life insurance contracts, and the description of the different systems of participation of the policyholder in the guarantee (insurance with excess, first loss insurance...), showing their advantages and disadvantages.
LESSON 13 Reserves or technical provisions
The magnitudes of stability and solvency are key elements in managing the insurance sector. Special attention to reserves or technical provisions is given in this lesson and some calculation methods are presented.
ITEM 14 Reinsurance
This lesson describes the basic concepts related to reinsurance, the main risk sharing systems, premiums and claims sharing systems and the main calculation methods applied to each of them.