# Basic Insurance Mathematics, 7.5 ECTS

First level## Facts

**Course code**MT5011

## Syllabus

**Special eligibility requirements**

Prerequisites for the course are knowledge equivalent to the courses Mathematics I, 30 credits, (MM2001), Mathematics II - Analysis, part A, 7.5 credits, (MM5010), Mathematics II - Linear Algebra, 7.5 credits, (MM5012), Probability Theory I, 7.5 credits, (MT3001), Statistical Analysis, 7.5 credits, (MT4001), Stochastic processes and Simulation, 7.5 credits, (MT4002), Programming Techniques for Mathematicians, 7.5 credits, (DA2004). Swedish upper secondary school course English B/6 or equivalent.

## Description

The course covers:

General principles for valuation of stochastic cash flows, interest rates, discounting and present value calculations.

Introduction to basic insurance concepts: Modelling of claims costs, reserving and premium principles, together with how these concepts differs between non-life and life insurance applications.

Solvency, risk aggregation and risk reducing techniques: Diversification, modelling of dependencies, risk measures and Solvency II (including financial/investment risks), reinsurance and other risk reducing techniques (including financial/investment risks)

## Area of interests: Science and Mathematics

Science and mathematics help us understand how the world around us is connected – from the origin and structure of the universe, to the development and function of humanity and all other organisms on earth. Scientific knowledge makes it possible to critically examine the credibility of information in different areas of everyday life, society, and the media. As a scientist or mathematician, you will be attractive on a large job market that covers all parts of society and includes everything from pure technology companies to environment and healthcare, as well as research.

## Subject

### Mathematical Statistics

Mathematical statistics is the subject within applied mathematics that describes and analyses random events.

The foundation is the mathematical probability theory, which goes back to the 17th century, but has in its modern form developed mostly during the 20th century. Probability theory is also the foundation of statistical theory on how to draw conclusions from data with random features. The rise of computer technology has also significantly contributed to broadening the field of applications within mathematical statistics. Today is mathematical statistics one of the most powerful tools in applied mathematics.

Examples that apply mathematical statistics to a large extent are the insurance and finance sectors, biological and medical research (biostatistics) and industrial applications like telecommunications and quality control.

The department cooperates closely both in research and teaching with the pharmaceutical industry, medical institutions and banking and insurance companies. Depending on direction of studies, a student with an exam in mathematical statistics has a good chance to get employment in these sectors.

Mathematical statistics can be studied in elective courses, as a major in a Bachelor’s or Master’s degree or as a complementary subject. Courses cover both theory and applications in various areas. Mathematical statistics is included in the Bachelor’s programmes in Mathematics, Biomathematics and Mathematics and Economics and a major in the Master’s programmes in Mathematical statistics, Biostatistics, Finance mathematics and Finance and Actuarial science.

## Course events

### Spring 2019

**Selection:**
No selection.

**Start period:**
Period 2 - starts during the second half of the semester

**Location:**
Stockholm

**Additional information:**
Application deadline 15 October.

**Appl.code: SU-48202**

### Tuition fees only concern citizens outside the EU, EES and Switzerland

**Total course/programme fee:**
17500 SEK