Aim

The aim of the Actuarial Mathematics 1 subject is to provide a grounding in the principles of modelling as applied to actuarial work – focusing particularly on deterministic models which can be used to model and value known cashflows as well as those which are dependent on death, survival, or other uncertain risks.

Competences

On the successful completion of this subject, the candidate will be able to:

1 describe the basic principles of actuarial modelling.

2 describe, interpret and discuss the theories on interest rates.

3 describe, interpret and discuss mathematical techniques used to model and value cashflows which are contingent on mortality and morbidity risks.

Syllabus topics

1 Data and basics of modelling (10%)

2 Theory of interest rates (20%)

3 Equation of value and its applications (15%)

4 Single decrement models (10%)

5 Multiple decrement and multiple life models (10%)

6 Pricing and reserving (35%)