Division of Economic and Financial Studies

ACST355 / ACST860: Contingent Payments 2

Lecturer in charge

Associate Professor Leonie Tickle

Availability

D2 - Day; Offered in the second half-year

Unit Outline

Websites

Handbook entry

Coursework unit website - WebCT (Login required) - N/A

Description

Multiple decrement models are considered and the valuation of benefits and contributions under superannuation plans is examined. Expected cash flow models and profit test models are developed for life insurance products including traditional products, unbundled unit linked contracts and disability income insurance products. The concepts of pricing and reserving for future contingent liabilities, and the effect of the pricing and reserving basis on the emergence of profit are considered.