The economics of insurance, individual and collective risk models, and applications of risk theory. Utility of wealth functions applied to insurance decisions, distributions for insurance claims, and the ruin model for the claims process. Exam 151-Risk Theory. We will use sample exam questions, obtained from the SoA, throughout the course.
Prerequisite knowledge consists primarily of calculus and probability theory.
The course should be of interest to students who want to learn more about using probabilistic concepts in the modeling of random phenomena. The emphasis will be on the mathematical models and their relevance, and not on computing or statistics. The distribution of aggregate claims, the claim number distribution, the claim amount distribution, compound Poisson distributions, compound negative binomial distributions, and approximations to the distribution of aggregate claims.