2015/16 Taught Postgraduate Module Catalogue
LUBS5005M Contingencies
15 creditsClass Size: 40
Module manager: Dr Iain Clacher
Email: ic@lubs.leeds.ac.uk
Taught: 1 Jun to 31 Jul View Timetable
Year running 2015/16
This module is not approved as an Elective
Objectives
On completion of the module students should be able to:- demonstrate a comprehensive knowledge and understanding of key issues and techniques to model cash flows at an advanced level
- demonstrate a comprehensive knowledge and understanding of key issues and techniques to model cash flows dependent on death, survival and other uncertain risks
- understand and appreciate contemporary theoretical and empirical literature in insurance contingencies
- critically appreciate the theories and techniques of modelling and valuing cash flows dependent on death, survival, and other uncertain risks with a view to undertaking advanced academic and professional research in insurance and pensions.
Learning outcomes
Students will be able to develop an understanding of models of survival and uncertainty and how these factors impact on the future cash flows of various pension and annuity products.
They should also be able to apply these techniques to practical problems and describe answers both mathematically as well as descriptively.
Skills outcomes
On completion of the module students are expected to be able to communicate both verbally and in writing the theoretical and applied the mathematical techniques required to model cash flows dependent upon death, survival and other risks.
Syllabus
Simple assurance and annuity contracts, formulae for the means and variances of the present values of the payments under these contracts, assuming constant deterministic interest.
Practical methods of evaluating expected values and variances of the simple contracts defined above.
Net premiums and net premium reserves of simple insurance contracts using ultimate or select mortality.
Net premiums and net premium reserves of simple insurance contracts using ultimate or select mortality for increasing and decreasing benefits and annuities.
Describing the calculation of gross premiums and reserves of assurance and annuity contracts.
Definition and applications of straightforward functions involving two lives.
Cash flow models contingent upon competing risks.
Discounting emerging costs, for pricing, reserving, and assessing profitability.
Apply multiple decrement tables to evaluate expected cash flows dependent upon more than one decrement, including:
- pension benefits
- other salary related benefits
- health and care insurance.
Describing the principal forms of heterogeneity within a population and the ways in which selection can occur.
Teaching methods
| Delivery type | Number | Length hours | Student hours |
| Lecture | 10 | 2.00 | 20.00 |
| Seminar | 10 | 1.00 | 10.00 |
| Private study hours | 120.00 | ||
| Total Contact hours | 30.00 | ||
| Total hours (100hr per 10 credits) | 150.00 | ||
Private study
- Pre-lecture reading 2 h each (40 h)- Post-lecture reading 2 h each (40 h)
- Seminar reading and preparation (40 h).
Opportunities for Formative Feedback
Student progress will be monitored through participation and performance in seminars.Methods of assessment
Exams
| Exam type | Exam duration | % of formal assessment |
| Standard exam (closed essays, MCQs etc) | 3 hr | 100.00 |
| Total percentage (Assessment Exams) | 100.00 | |
Normally resits will be assessed by the same methodology as the first attempt, unless otherwise stated
Reading list
The reading list is available from the Library websiteLast updated: 23/05/2012
Browse Other Catalogues
- Undergraduate module catalogue
- Taught Postgraduate module catalogue
- Undergraduate programme catalogue
- Taught Postgraduate programme catalogue
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