to provide grounding in mathematical and statistical techniques which can be used

to model and value cashflows dependent on death, survival, or other uncertain risks.

this course, together with the course on financial mathematics, will also provide the students with the solid background to make calculations in respect of payments depending on life contingencies.

it will also be helpful for the students who intend to pursue their career in financial sector and teaching in risk management course as well as and developing stochastic models as applied to finance, insurance and pension.

this course will also help prepare the students to appear in the actuarial professional examination in actuarial mathematics/life and other contingencies.

define various forms of assurance, annuity and pension contracts

obtain expressions for the mean and variance of the present value of benefits under each contract

describe and calculate net premiums and net premium reserves of simple insurance contracts

describe and calculate gross premiums and gross premium reserves of simple insurance contracts

Describe and use method of projecting and valuing expected cash flows that are contingent upon multiple decrement events

have concepts of the role of insurance industry

have adequate knowledge in actuarial mathematics/life and other contingencies to appear in actuarial professional examination.

Simple Assurance and Annuity Contracts: whole life assurance, term assurance, pure endowment, ordinary endowment assurance, whole life level annuity, temporary level annuity, guaranteed level annuity, premium, benefit The Mortality Table: Rate of mortality, force of mortality, laws of mortality, Select, ultimate and aggregate mortality tables, Mean and Variance of the present value of benefit payments under each contract, Relations between annuities payable in advance and in arrear and between temporary, deferred, and whole life annuities Annuities, Assurances,

Premiums: Pure endowments, Annuities, Assurances, Net premiums, Office premiums, Relations among the mortality functions

Policy Values: Nature of reserve, Prospective and retrospective reserves, Net premium prospective and retrospective reserves, Modified net premium prospective reserve, Gross premium prospective and retrospective reserve Successive Reserves and Mortality Profit: Death strain at risk, expected death strain, actual death strain, mortality profit Surrender and Paid-up values: Surrender values, Paid-up policy values, Non-forfeiture provisions, Option, Alteration to policies Joint Life and Last Survivor Statuses: Joint life functions, Last survivor status, Z-method

Contingent Functions and Reversionary Annuities: Contingent probabilities, contingent assurances, Compound and special contingent functions, Premium for contingent assurances, Evaluation of contingent functions, Reversionary annuities

1)

Hooker, P.F., Longly-Cook, L.H. (1953). Life and Other Contingencies Vol.1, Cambridge University Press

2)

Neil, Alister. (1983). Life Contingencies, William Heinemann Ltd., 10 Upper Grossvenor Street, London. [Dickson, Weishaus]

3)

Sohrab Uddin, M. (1992). An Introduction to Actuarial and Financial Mathematics,

[Garrett, Borowiak, Gupta]

4)

Jordan, C.W. (1967). Life Contingencies, Society of Actuaries, USA Actuarial Education Company, London, CT5 Conting

5)

Srivastava, A.K., Agarwal, G.N. (2011). Foundation of Actuarial Science, Insurance Institute of India, Bandra-kurLa Complex, Mumbai. [Insurance Institute of India]