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Apr 30, 2025
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2024-2025 Undergraduate Catalog
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MATH 0346 - Actuarial Problem Solving: Fundamentals of Actuarial Mathematics
Credits: 3
This course develops the foundational tools that actuaries use for both short-term and long-term insurance products. Students explore key features of insurance products such as insurable risk; auto, health, disability, liability, life insurances, and long-term care and their modifications; reinsurance; and effects of deductibles, inflation, and policy limits on loss elimination ratios. Using concepts from MATH 0342, students will construct severity, frequency, and aggregate models to calculate probabilities and expectation of risk models. Using concepts from MATH 0345, students will estimate parameters for distributions using maximum likelihood, Kaplan-Meier, and Nelson-Aalen estimators for complete data (both individual and grouped), truncated data, and censored data. Students will explore an introduction to credibility theory and perform calculations using classical credibility. Using concepts from MATH 0343, students will explore pricing and reserving techniques for outstanding claims and apply these techniques to ratemaking. Students will use pricing models to price financial derivatives using put-call parity, binomial models, and the Black-Sholes-formula. Combining concepts from MATH 0342 and MATH 0343, students will construct present value distributions for life-contingent insurance products and calculate moments for various distributions modeling these products. This course will cover all concepts tested on the most recent syllabus for the actuarial exam SOA FAM.
Prerequisites: MATH 0342 , MATH 0343 , and MATH 0345
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