2007 Handbooks

An introduction to the important underlying aspects of actuarial work; indicates how studies in related disciplines (accounting, computing, demography, economics, mathematics and statistics) are essential to the education of an actuary. Starting with the basic concepts of probability, and the concept of a 'fair game', issues which emerge in respect of a very simple insurance contract are presented: the probability of a claim; the distribution of size of a claim; factors affecting these; underwriting; expenses; calculation of premium; probability of ruin; profitability of insurance; incurred but not reported claims; outstanding claims provisions; claims management; investment of funds; control cycle. These are then extended to life insurance and superannuation. Students will be required to perform some simple simulations of the processes discussed, but no previous computer experience will be assumed.