You are here: Mathematics > undergraduate > undergraduate studies > course units > level 3 units > MATH39542
School of Mathematics

# MATH39542 - 2011/2012

General Information
• Title: Risk Theory
• Unit code: MATH39542
• Credits: 10
• Prerequisites:
• Co-requisite units: None
• School responsible: Mathematics
• Member of staff responsible: Dr. R. Loeffen
Page Contents
Other Resources

## Specification

### Aims

This unit aims at providing students with a further grounding in the important statistical and probabilistic techniques and models relevant to the non-life insurance industry.

### Brief Description of the unit

Following up on the course unit Actuarial Insurance this unit introduces further concepts and models relevant to the non-life industry, in particular the important concept of ruin in a risk model is discussed. The course covers part of Subject CT6, one of the core technical modules from the educational program of the Actuarial Profession.

### Intended Learning Outcomes

Upon successful completion, the students are expected to be able to describe, fully understand and apply the notions and models developed during the course. This concerns both the mathematical techniques and the actuarial interpretation.

Future topics requiring this course unit

Several other actuarial subjects offered by the educational program of the Institute of Actuaries, such as Subject CA1, ST1 and ST3, will rely on the material delivered in this course.

### Syllabus

1. Risk models. Several models, probability and consequences of ruin, Cramer-Lundberg.
2. Premium principles and risk measures.
3. Bayesian statistics.
4. Credibility Theory.

### Textbooks

Core Reading: Subject CT6, Statistical Methods. Produced by the Actuarial Education Company (www.acted.co.uk).

### Teaching and learning methods

1. Lectures and Feedback Tutorials: There are two lectures and one tutorial class each week.
2. Private Study: In addition, students should expect to spend at least four hours each week on private study for this course unit.

### Assessment

Coursework 10%
Examination at the end of the semester, two hours duration, 90%.