Information Package

Program of Insurance

SİGO431

ACTUARIAL MATHEMATICS

Course Code
SİGO431
Semester
Seventh Term (Fall)
Theory+Practice
3 + 0
ECTS
5
Course TypeCompulsory Course
Course LevelBachelor's Degree
Year of Study4
SemesterSeventh Term (Fall)
ECTS5
Name of Lecturer(s)
Learning Outcomes

At the end of this course, the students;

  1. Understand the concepts of annuities, including compound interest, recurring annuities, and single net premiums, and how they relate to life insurance.
  2. Gain the ability to create life tables, prepare mortality tables, and calculate expected life expectancy.
  3. Acquire knowledge of types of life annuities (whole life insurance, temporary, deferred, reserved, increasing, and decreasing annuities) and understand their characteristics.
  4. Perform premium calculations in life insurance and determine net premiums.
  5. Identify types of reserves (net-level, retrospective, and prospective) and develop the ability to calculate them.
Mode of DeliveryFace to face
PrerequisitesNo
Recommended Optional Programme ComponentsNone
Course DescriptionThis course covers the mathematical theories and applications in the fields of life insurance, health insurance, and pensions, using both probabilistic and deterministic approaches. Topics include life distributions, life tables, life insurance policies, net premiums, net premium reserves, multiple life functions, and multiple decrement models.
Course Contents
WEEK TOPICS
1st Week Annuities: compound interest, recurring annuities, single net premiums, whole life insurance
2nd Week Annuities: compound interest, recurring annuities, single net premiums, whole life insurance
3rd Week Review of probability and statistics
4th Week Life tables, constructing mortality tables, expected life
5th Week Life annuities (whole life, temporary, deferred, pure endowment, increasing and decreasing, payable for more than one year)
6th Week Life annuities (whole life, temporary, deferred, pure endowment, increasing and decreasing, payable for more than one year)
7th Week Problem solving
8th Week Midterm exam
9th Week Premium calculations in life insurance
10th Week Premium calculations in life insurance
11th Week Net premiums
12th Week Policy return practices
13th Week Reserves, net level reserves, retrospective reserves, prospective reserves
14th Week Problem solving
Recommended or Required ReadingWorkman, L. C. (1982). Mathematical foundations of life insurance. FLMI Insurance Education Program, Life Management Institute LOMA.

Menge, W. O., & Fischer, C. H. (1965). The mathematics of life insurance: A practical guide to the application of insurance principles (2nd ed.). Macmillan.

Aksoy, E. E. (2016). Aktüerya Matematiği ve Yaşam Analizi. Detay Yayıncılık.
Planned Learning Activities and Teaching Methods
  • Lecture
  • Questions/Answers
  • Problem Solving
  • Discussion
Assessment Methods and Criteria
Quantity Percentage (%)
Mid-term 1 30
Assignment 3 15
Quiz 2 15
Total(%) 60
Contribution of In-term Studies to Overall Grade(%) 60
Contribution of Final Examination to Overall Grade(%) 40
Total(%) 100
ECTS Allocated Based on Student Workload
Activities Quantity Duration (Hour) Total Workload (Hour)
Midterm exam 1 1 1
Preparation for Quiz 2 3 6
Individual or group work 14 3 42
Preparation for Final exam 1 30 30
Course hours 13 3 39
Preparation for Midterm exam 1 20 20
Laboratory (including preparation)
Final exam 1 1 1
Homework 3 3 9
Total Work Load148
Total Work Load / 30 (h)4.93
ECTS Credit of the Course5
Language of InstructionTurkish
Work Placement(s)No
LO1 LO2 LO3 LO4 LO5
K1 X X X X X
K2
K3
K4
K5 X X X X X
K6 X X X X X
K7 X X X X X
K8
K9 X X X X X
K10
K11