## Info

**Schedule:**

- Tuesday 12.15-13.45 J. Liivi 2 - 402
- Wednesday 10.15-11.45 J. Liivi 2 - 402

**Moodle page of the course:** https://moodle.ut.ee/course/view.php?id=2153

**Amount of credits:** 6 ECTS (EAP)

**Course code:** MTMS.02.053

**Lecturer:** Meelis Käärik (associate professor, Institute of Mathematical Statistics, University of Tartu)

**Target group:** master students of actuarial and financial engineering / financial mathematics / financial and actuarial mathematics / mathematics and statistics programmes

**Recommended prerequisites:** MTMS.01.001 Mathematical Statistics I

**Brief description:** The course gives an overview of the basis of non-life insurance mathematics. The topics include cash-flow models of the non-life insurance company, principles of calculating premiums and indemnities, risk models, reinsurance models and basis of the technical reserves of an insurance company. The theory is connected to real life situations through exercises and realistic case-studies.

**Objectives of the course:** The aim of the course is to introduce the principles of insurance mathematics and to obtain basic technical skills for actuarial calculations.

**Learning outcomes:**

Participants who pass this course

- know most common types of insurance premiums and the principles of compensation and deductible;
- know common reinsurance models;
- understand the nature of technical reserves;
- can solve related practical problems.

**Final assessment:** differentiated (A, B, C, D, E, F, mi)

**Requirements to be met for final assessment:** Tests (2) passed. To pass a test, at least 15 points (50% of maximum) is required. There is a possibility to take re-test (max 25p) once.

**Composition of the final result:** max 60 points from tests (30 + 30) and 40 points from examination (10 extra points obtainable from home assignments and activity in labs)

The final grade is calculated based on the points as follows:

- 90+ points: A
- 80 - 89.9 points: B
- 70 - 79.9 points: C
- 60 - 69.9 points: D
- 50 - 59.9 points: E
- less than 50 points: F

**E-learning activities:** the lecture notes of given course can be used either as a supplementary material for auditory studies, or as a basis for independent studies. The lecture notes contain all required theoretical material for the course (additional textbooks are available in case of more thorough interest, see below). The course also includes 9 labs that are intended to solve exercises; alternatively, it is also possible to solve the exercises independently. Related questions can be asked in course forums. Besides solving exercises in labs, some home assignments are given during the course. Home assignments are voluntary, but solving home assignments gives extra credits that are taken into account while calculating the final grade. The submission and evaluation of home assignments is done through the Moodle environment (it is also possible to submit home works on paper in labs). The composition of grade through home works, tests and examination is also visible in Moodle environment. Tests and final examination have to be taken in person.

**Recommended study materials:**

- Booth P., Chadburn, R., Cooper, D., Haberman, S., James, D. (1999) Modern Actuarial Theory and Practice. Chapman & Hall / CRC.
- Gray, R.J. & Pitts, S.M. (2012) Risk Modelling in General Insurance. From Principles to Practice. Cambridge University Press.
- Tse, Y.-K. (2009) Nonlife Actuarial Models. Cambridge University Press.
- Kaas, R., Goovaerts, M., Dhaene, J., Denuit, M. (2008) Modern Actuarial Risk Theory: Using R. Springer, Berlin/Heidelberg.
- Sundt, B. (1993) An Introduction to Non-Life Insurance Mathematics. VVW, Karlsruhe.
- Dickson, D.C.M. (2006) Insurance Risk and Ruin. Cambridge University Press.

**Additional information:** Meelis Käärik (meelis.kaarik@ut.ee)