Risk Management in Non-Life Insurance

Objectives

The goals of this course are based in part on "Core Syllabus for Actuarial Training in Europe" proposed by the "Groupe des Associations d''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''Consultatif Actuaires des Pays des Communautés Européennes". It is part of the goals of the discipline to study provisioning methods, emphasizing the Claims reserves, considering deterministic and stochastic models. Another goal is to understand the fundamentals of charging a priori, using usual methods in the insurance business: Credibility Theory and Generalized Linear Models. It is also intended to convey the traditional models for pricing a posteriori: Bonus Malus Systems. It also addresses the issue of Branch disease and the impact of Solvency II on risk measures. The student will acquire training in mathematical techniques that are of particular relevance to actuarial work in non-life insurance.

General characterization

Code

11033

Credits

6.0

Responsible teacher

Maria de Lourdes Belchior Afonso

Hours

Weekly - 4

Total - 70

Teaching language

Português

Prerequisites

Available soon

Bibliography

Portuguese legislation

Centeno, M.L. (2002), Teoria do Risco na Actividade Seguradora, Celta Editora.

Buhlmann, H. and Gisler, A. (2005). A Course in Credibility Theory and its Applications, Springer.

Dobson, A. (1990), An Introduction to Generalized Linear Models, Chapman & all, London.

HABERMANN, S. e PITACCO, E. (1999), Actuarial Models for Disability Insurance, Chapman and Hall/CRC, Londres.

Lemaire, J. (1995), Bonus-Malus Systems in Automobile Insurance, Kluwer Academic Publishers.

Ohlsson, E.; Johansson, B. (2010), Non-Life Insurance Pricing with Generalized Linear Models, Springer.

Faculty of Actuaries (1997) Claim Reserving Manual

Teaching method

The teacher presents the themes using slides and privileging the exchange of ideas to reach the goal of each lesson. Students perform practical application of the concepts acquired in class throughout the semester. Whenever possible the matter is illustrated with real examples from insurance. Classes take place in the laboratory to be possible to access content on the internet and solving problems using Excel, R and Mathematica.

Evaluation method

FREQUENCY

It is attributed to students who have attended at least 5 classes. Are exempted from obtaining it all students with special status (read the rule from FCt-UNL site).

EVALUATION

Only students who obtain frequency or have special status can attend assessment tests. The evaluation is performed through one test during the semester, (T), and a mini-test (MT) or through exam (E). In addition all enrolled students must submit one practical assignment, (TP).

  The absence of an assessment it is 0 values ​​in this evaluation.

  A student gets approval in the course simultaneously check if the following conditions:

     classification in the test (T) not less than 8.5 values ​​or classification Exam (E) not less than 8.5 values​​;
        EN = 0,3xTP+0,2xMT+0,5xT not less than 9.5 or ER=0,3xTP+0.7xE not less than 9.5.

IMPROVEMENT OF GRADE

  Every student who wishes to improve the grade must sign up for this purpose, the Academic Division. The improvement can be made ​​in Época de Recurso(ER). It is requires that:
     NEM = NEM=0,3xTP+0,7xER is higher than the previous grade.

If EN >=18.5, ER>=18.5 or NEM>=18.5 the student may opt by final grade equal to 18 or to do an extra assignment.

Subject matter

Reserves: Deterministic and Stochastic Models

Credibility Theory and Generalized Linear Models applied to a priori pricing.

Bonus Malus Systems

Insurance and Health Benefits: definitions and specifics of Disease Branch

Solvency II

Health Insurance: definitions and specificities.

Programs

Programs where the course is taught: