FM 311. Life Insurance Mathematics I

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Life tables and definition of the main life table (commutative) functions. Future lifetime as a random variable, distributions density functions, moments etc. Uniform distribution of deaths and constant force of mortality. Gompertz and Makeham laws of mortality. Other life table functions. Contrast between deterministic and statistical (stochastic) approaches. Life table as a population model and stationary populations. Main types of insurance contract and standard actuarial symbols. Expected values of payments under different insurance contracts. Numerical evaluation including life table functions. Equations of value. The net premium.

Main textbooks:

H. Gerber, Life Insurance Mathematics. With Exercises Contributed by Samuel H. Cox, Springer, 1998.

N. Bowers, H. Gerber, J. Hickman, D. Jones, C. Nesbitt, Actuarial Mathematics, 2nd ed. Society of Actuaries, 1997.

 

Auxiliary textbooks:

 

B. Benjamin, J. Pollard. The Analysis of Mortality and Other Actuarial Statistics, Institute of Actuaries and Faculty of Actuaries, 1993.

R. Elandt-Johnson, N. Johnson, Survival Models and Data Analysis, John Wiley & Sons, 1999.

Credit : 3

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