Life Insurance
- Credits: 6
- Ending: Examination
- Range: 2P + 2C
- Semester: winter
- Year: 2
- Faculty of Economic Informatics
Teachers
Included in study programs
Teaching results
Knowledge. The main educational goal of the course is to acquaint students with the methods of pricing in life insurance, actuarial analysis and reinsurance in life insurance in theory and in practice .Students should understand the methods of product pricing, they should have knowledge of methods for valuing assets, liabilities, surplus, solvency and reinsurance of life insurance.
Skills. Graduates should be able to apply the acquired knowledge and skills and methods in practice and thus obtain the basic prerequisites for the work of an actuary, but also the risk manager in a life insurance company.
Competences. Graduates should actively expand their actuarial knowledge and skills and thus acquire additional competencies for the work of an actuary and risk manager.
Indicative content
1. Life insurance contracts.
2. Contract design. Pricing techniques.
3. Profit testing. Profit criteria.
4. Underwriting and extra risks.
5. Pricing bases – mortality, interest rate, expenses, inflation, surrenders.
6. Areas of risk and uncertainty. Actuarial investigations.
7. Methods for valuing the assets and the liabilities. Earned asset shares.
8. Methods of policyholder participation.
9. Unit-linked contracts.
10. Surrender values. Alterations. Mortality options. Financial guarantees.
11. Reinsurance.
12. The financial management of a life insurance company, ALM.
13. Market consistent embedded value. Investment strategy. Actuarial control cycle.
Support literature
1. SAKÁLOVÁ, K. (2001). Oceňovanie produktov v životnom poistení. Bratislava : Ekonóm EUBA, 2001. 156. ISBN 80-225-1350-4.
2. SAKÁLOVÁ, K. (2006). Aktuárske analýzy. Bratislava : Ekonóm EUBA, 2006. 113. ISBN 80-225-2115-9.
3. DICKSON, D., C., M., HARDY, M., R., WATERS, H.,R. (2009). Actuarial Mathematics for Life Contingent Risk. Cambridge University Press, New York.
4. LIFE INSURANCE (1995). Subject F. Institute of Actuaries. Oxford.
5. OLIVIERI, A., PITACCO, E. (2015). Introduction to insurance mathematics: technical and financial features of risk transfers. New York: Springer.
6. ROTAR, V. I. (2014). Actuarial models: the mathematics of insurance (2nd ed.). Chapman and Hall/CRC.
Syllabus
1. Life insurance contracts. 2. Contract design. Pricing techniques. 3. Profit testing. Profit criteria. 4. Underwriting and extra risks. 5. Pricing bases – mortality, interest rate, expenses, inflation, surrenders. 6. Areas of risk and uncertainty. Actuarial investigations. 7. Methods for valuing the assets and the liabilities. Earned asset shares. 8. Methods of policyholder participation. 9. Unit-linked contracts. 10. Surrender values. Alterations. Mortality options. Financial guarantees. 11. Reinsurance. 12. The financial management of a life insurance company, ALM. 13. Market consistent embedded value. Investment strategy. Actuarial control cycle.
Requirements to complete the course
The semester work and the written test – 30 %
The final written test – 70 %
Student workload
Total study load (in hours): 156 hours
26 hours participation in lectures
26 hours participation in exercises
26 hours preparing for exercises
26 hours preparation for course credit
52 hours individual study in preparation for the exam
Language whose command is required to complete the course
slovak
Date of approval: 10.02.2023
Date of the latest change: 15.05.2022