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 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 - 8

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 using Zoom and it will be possible to access content on the internet and solving problems using Excel, R and Mathematica.

Evaluation method

FREQUENCY

The frequency is attributed by the individual presentation.

EVALUATION

The absence in a component translates into a classification of 0 values ​​in that component.

Normal Season (continuous evaluation):

AC = 0.2 (TP1 + TP2 + TP3 + TP4 + Apr)

TP1- Provisions

TP2 - Credibility

TP3 - Malus Bonus Systems

TP4 - Ratemaking

Apr- Individual presentation on one of these themes.

Season of Appeal:

Face-to-face examination of the whole subject.

Practical assignments:

There is a group work for each of the four modules of the UC.

Students must choose the Groups on the topics indicated at the beginning of the course. They are groups of 3 students. The groups must be different in each assignment. If there is no understanding in the constitution of the groups, the groups will be sorted by the Professors.

Individual Presentation:

At the beginning of the course, each student gets to know about which topic they will make their individual presentation. You should prepare 15 to 20 minutes of presentation on the topic, submitting the slides that will also be counted for evaluation. The Presentation is performed via Zoom. If you are not able to have the video camera connected, you must inform the Teacher to schedule a live presentation at FCT.

Warning:

The Regent reserves the right to take an oral exam in each group assignment.

NOTE DEFENSES AND IMPROVEMENTS

The student who wishes to present the grade improvement, must register for this purpose in the Academic Department. Grade Improvement is performed in the Appeal Period exam.

If the student obtains a final classification greater than or equal to 19, he / she can choose to stay with the final classification of 19 values ​​or take a complementary test to defend his / her grade.

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: