MA 573

This course provides a foundational introduction to the mathematical principles used in actuarial science, focusing on applications in life insurance and life annuities. Key topics include: 1. Survival Distributions: Understanding the basic probabilistic models that describe the future lifetime of individuals, including key measures such as survival functions, force of mortality, and hazard rates. 2. Life Tables: Introduction to life tables as tools for summarizing mortality patterns, deriving survival probabilities, and calculating expected lifetimes for different age groups. 3. Life Annuities and Life Insurance: Exploration of life annuities (payments over an individual’s lifetime) and life insurance products (financial protection against loss of life), with emphasis on calculating present values and expected cash flows for different contract types. 4. Calculation of Premiums and Reserves: Students will learn the methodologies to calculate fair premiums and reserves necessary to ensure long-term financial stability of life insurance and annuity contracts. This includes both level and varying premium structures. 5. Introduction to Policy Valuation: An introduction to actuarial valuation techniques, emphasizing the evaluation of insurance policy liabilities, reserves, and solvency assessments. Through a combination of theory and practical applications, students will gain a solid foundation in actuarial models and techniques, preparing them for more advanced studies in actuarial science and professional examinations. Note: Students are expected to be familiar with topics covered in Introduction to Mathematical Finance (equivalent to MA170) and Probability Theory (equivalent to ST259). <br>