Actuarial Science For Non-Actuaries

Name: Actuarial Science For Non-Actuaries
Rating: 4.7 (1040 reviews)

How Insurance Really Works

Created byNicholas Jacobi, FSA, MAAA, CERA

Last updated 1/2019

English

What you'll learn

Understand the concept of reserves
Have knowledge of insurance law
Become familiar with basic accounting concepts

Course content

4 sections • 27 lectures • 2h 41m total length

Introduction4:53
An introduction to the course, your instructor, and the topics we will be covering
What Is An Actuary3:41
What exactly is an Actuary? (Expected Claims) What do they do? (Expected Claims) Why are they here? (Expected Claims)
The Pooling Concept5:52
Here we will discuss the pooling concept and how it makes insurance work
Accounting: An Introduction12:00
Demonstrate how accounting statements—balance sheet, net income statement, and cash flow statement—reveal an insurance company's financial position and changes over time, using cash versus accrual and statutory versus GAAP concepts.

Long Duration Contracts & Reserves5:20
The economics of long-duration contracts such as life require a different approach to product pricing, namely we introduce the concept of a savings account for future claims called a reserve.
Active Life Reserve Example5:26
A concrete example of a reserve using a spreadsheet approach with some simplifications.
Illustrative Life Table7:39
In this lecture we take a tour of the illustrative life table, a source for our EC in prior lectures.
Disability Insurance And Claim Reserves9:07
Explore disability insurance basics, including short term and long term coverages, and learn how actuaries set claim reserves using termination tables and recovery odds.
Claim Reserves Example6:14
Calculate a five-month disability claim reserve by applying monthly benefits, survival probabilities, and a 4 percent valuation rate to project end-of-period reserves.
Unearned Premium Reserves5:09
Explore unearned premium reserves and earned premium concepts, including written premium, reserve changes, and their treatment under statutory and gas standards.
Margin Based Pricing3:48
Unlike the premium based pricing we looked at earlier companies look at gross margins when altering UL assumptions.
Reserving Review & Final Thoughts7:38
Here we will review the ideas in this section and summarize our findings on traditional reserves

The Expense Problem2:54
Insurance is sold, not bought, as such selling insurance requires high first year commissions that make acquiring business costly.
Statutory Treatment Of Expenses2:42
An overview of how statutory accounting treats acquisition costs
CRVM Reserving4:05
An example of CRVM reserving for traditional life products.
UL CRVM4:28
Here we go through an example of how CRVM reserving impacts a Universal Life contract
Two Year Preliminary Term Reserving4:28
Explore the two-year full preliminary term reserve, a CRM-based approach that defers reserves for health and other long-term policies with high acquisition costs, then starts reserving in year three.
Annuities: An Overview11:03
An introduction to the various types of annuities available in the market as food for thought for the CARVM lectures.
CARVM Reserves - Basic Concept3:17
CARVM, a large topic, and the concept of it's reserves.
CARVM Reserves - Expense Allowance2:36
Definition of expense allowances for CARVM reserving
RBC - A Brief History9:10
What is Risk Based Capital and where did it come from?
CARVM - Actuarial Guidelines8:58
CARVM actuarial guidelines overview, from the first one AG33 to the latest PBR/RBC model in AG43

GAAP Expenses and Ultimate Commissions2:41
At this point we what an acquisition expense is and how GAAP deals with it.
Premium Based DAC7:17
Here we'll introduce the DAC asset from a premium (FAS 60) perspective with an example.
EGP & FAS 97 Product DAC5:22
For FAS97 products the DAC asset is linked to the EGP estimate for a contract.
FAS 97 DAC Unlocking & Truing Up6:18
The next step in this DAC evaluation is to create a K-factor for the speed of amortization and periodically re-evaluate it.
Premium Deficiency & Loss Recognition Testing9:38
We're looking at the premium deficiency concept and it's relation to the DAC asset.

Requirements

Basic mathematics skills
Knowledge of spreadsheeting software is helpful

Description

You probably have some insurance, in fact you probably have to, but how does it really work? Where do your premiums go? What does an insurer do with them?

In this course we'll see how the prices paid for insurance become claim payments and add to the economy.

From the pooling concept to reserves, expenses, landmark accounting standards, and annuities with their investments you'll learn the concepts from an industry insider with the small actuarial profession that deals with the finance of insurance.

Who this course is for:

Insurance professionals
Finance and investment students
Accounting professionals
Anyone interested in insurance
Aspiring actuaries

Actuarial Science For Non-Actuaries

What you'll learn

Explore related topics

Course content

Introduction4 lectures • 26min

Traditional Reserve Concepts8 lectures • 50min

Statutory Treatment Of Expenses And Reserves10 lectures • 54min

GAAP Treatment Of Expenses And Reserves5 lectures • 31min

Requirements

Description

Who this course is for: