Actuarial Mathematics

The goal of the subject is for students to master the actuarial models of life insurance from the theoretical and practical side, which is studied and applied primarily in the insurance industry but also in other areas of economic and social life. In addition to the basic models, the goal is to gain knowledge of combined models and their necessary conversion.

After passing the exam the students will master a multitude of actuarial models and methods of life insurance, theoretically and scientifically based and operationally and practically applicable from the quantitative and qualitative point of view, and by applying the cost-benefit analysis they will find the most rational solutions based on the given premises, parameters and variables.

Probability in the life and non-life insurance; Models of life insurance of periodic personal payments/rents based on single and recurring premiums; Models of life insurance of single payment/equity based on single and recurring premiums; Insurance of more persons; Calculation of gross premiums; Individual and group methods for calculating the premium (mathematical) reserves; Repurchase and severance payment; Changes of the contracted terms of insurance; Price list, tariff system; Testing of combined models with periodic conversions and financial repercussions.

Lectures, exercises and seminars.

Classical lectures and exercises. Case studies. Repetition exercises in small groups. Colloquium I (0-20 points); Colloquium II (0-20 points); Final exam (0-50 points); Attendance (2point); Class activities (seminar papers, discussions, case studies) (0-8 points)

Booth, P. M. еt al. (1999). Modern Actuarial Theory and Practice. London: Cham. & Hall; Bowers, N. L.; Gerber, H. U.; Hickman, J. C.; Jones, D. A.; Nesbitt, C. J. (1997). Actuarial Mathematics, The Society of Actuaries. Illinois: Itasca; Kočović, J. (2000). Actuarial basics of formation of tariffs in the personal insurance. Belgrade: Faculty of Economics; Krčmar, M. (1977). Life insurance models based on a single premium. Sarajevo: Faculty of Economics; Šain, Ž. (2009). Actuarial models of life insurance. Sarajevo: Faculty of Economics.