Actuarial Science 2427A/B Lecture Notes - Lecture 6: Term Life Insurance, Direct Marketing, Life Annuity
14 Jun 2018
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AS2427b- Chapter1 Lecture Notes January 10, 2018
1
AS2427a Life Cons I- Text Chapters covered
(lecture today
)
• Future life time random variable, force of mortality,
international actuarial notation(IAN),expected future lifetime
•
••
•
Life tables, fractional age assumptions, life insurance, survival
models, underwriting, select & ultimate models
•
••
•
IAN and EPV(& variance) calculations for various types of life
insurance with different death benefit payout timing assumptions
•
••
•
IAN and EPV (& variance) calculations for various types of life
annuities that are paid at different frequency
find more resources at oneclass.com
find more resources at oneclass.com
AS2427b- Chapter1 Lecture Notes January 10, 2018
2
!
"#
(1) Background
(2)
$
(3) Other Insurance Contracts
(4) Pension Benefits
(5) Mutual and proprietary insurers
find more resources at oneclass.com
find more resources at oneclass.com
AS2427b- Chapter1 Lecture Notes January 10, 2018
3
%&!
• Text looks at “combining models of mortality with models in
finance to develop a framework for pricing and risk
management for long-term policies in life insurance and life
annuities”
Techniques can be used for other modeling as well(e.g. pension
mathematics, other insurance types
)
• 2427 product focus; life insurance and life annuities and the
determination of EPV(1st moment) & second moments for
different product types
This requires a good understanding of survival modeling
and life tables(Ch.2 and Ch. 3)
find more resources at oneclass.com
find more resources at oneclass.com
