MODULES

Aim
The aim of the Mathematics for the General Insurance course is to lay the mathematical foundations for practical applications in the financial management of a general insurance company.

Objectives
On completion of the module the trainee actuary will be able to:

• describe and apply techniques for analyzing a run-off triangle and projecting the ultimate position,
• explain the workings of a simple no claims discount (NCD) system, calculate the stationary distribution for the number of policyholders at each level of discount and calculate the probability, using simple criteria, that policyholder will make a claim,
• describe and apply the fundamental concepts of credibility theory,
• define the main concepts underlying the analysis of time series data,
• investigate linear relationships between two variables using correlation analysis and regression analysis,
• calculate probabilities and moments of loss distributions both with and without simple reinsurance arrangements,
• construct risk models appropriate to short-term insurance contracts and calculate the moment generating function and the moments for risk models both with and without simple reinsurance arrangements,
• calculate and approximate the aggregate claim distribution for short-term insurance contracts.