The aim of the Actuarial Statistics subject is to provide a grounding in mathematical and statistical modelling techniques that are of particular relevance to actuarial work, including stochastic processes and survival models and their application.

On successful completion of this subject, a student will be able to:

describe and use statistical distributions for risk modelling.

describe and apply the main concepts underlying the analysis of time series models.

describe and apply Markov chains and processes.

describe and apply techniques of survival analysis.

describe and apply basic principles of machine learning.

Insurance: Nature and functions of insurance ; Benefits and costs of insurance system to the society; Economic theories of insurance; The mathematical basis for insurance; Insurable interest; Principle of indemnity; Doctrine of subrogation; Warranties; Proximate causes; Assignment of transfer of interest; Return of premium.

Life Insurance: Essential features of life insurance contract; Risk selection for life insurance; Sources of risk information; Classification of annuities.

Health insurance: Types of health insurance coverage; Exclusion in health insurance policies. Payment of claim. Fire insurance, Marine insurance, and other insurance: Concepts, features, policies and coverage; payment of claim;

Risk Management: Loss, peril, hazard and risk; Types of risk; Development and implementation of risk management programs; Methods of dealing with risk; personal risk management. The economics of insurance, utility theory, Application of probability to problems of life and death, the determination of single premiums for insurances and annuities in both the discrete and continuous case. Theory and practice of pension funding, Assumptions, Basic actuarial functions and population theory applied to private pensions.

Survival distributions and life tables, Life insurance, Life annuities, Net premium, Premium series, multiple life functions, multiple decrement models, Valuation theory for pension plans, the expense function and dividends.

Measurement of risk and Mortality Table: Mortality tables and its classification; Construction of mortality tables; Premium calculation of various life policies.

Exposure formulas: Assumed and using implications, Techniques of calculating exposures form individual records including consideration involving selection of studies, various observation periods and various methods of tabulating deaths. Techniques of calculating exposures from variation schedules including the general concepts of fiscal year. The use of interim schedules and variations in observation period or method of grouping deaths and practical aspects of construction of actuarial tables.