Week 2

Overview #

This week, we will cover the following topics:

• Actuarial Practice:
  • A discussion of predictive analytics and its impact on actuarial practice
• Actuarial Techniques:
  • The concept of compound interest in the Time Value of Money chapter: how does money accumulate when interest is paid at certain intervals, and interest is earnt on interest?

If you wish to watch the embedded videos from Lecture Capture, you need to have logged in and entered Lecture Capture via Canvas once for each session. This is to restrict access to students enrolled at the University of Melbourne only.

See also detailed learning outcomes for this week.

Main references and lectures #

Actuarial Practice #

Read: Predictive analytics

Annotate: slides annotated slides

Watch:

If you wish to watch the embedded videos from Lecture Capture, you need to have logged in and entered Lecture Capture via Canvas once for each session. This is to restrict access to students enrolled at the University of Melbourne only.

Actuarial Techniques #

Time Value of Money - Compound Interest #

Read: Time Value of Money - Compound Interest

Annotate: slides annotated slides from the pre-recorded lecture

Watch:

If you wish to watch the embedded videos from Lecture Capture, you need to have logged in and entered Lecture Capture via Canvas once for each session. This is to restrict access to students enrolled at the University of Melbourne only.

Additional preparation and resources #

Mandatory #

1. Finding the Data Analytics Unicorn
2. Chris Dolman on his career
3. Actuaries Institute says Big Data set to transform Australia's insurance industry - only the executive summary
4. Insurtech trends: using data to create dynamic insurance
5. New insurtech FloodMapp could save insurers millions in claims assessment costs

Optional #

1. Read Section 2.2.1 of Atkinson and Dickson (2011)
2. Should I Use this Rating Factor? Philosophical Approach to an Old Question
3. Actuaries in Data Analytics (Practice Committee)
4. Podcast - What is machine learning?
5. Podcast - Chris Dolman interview on Ethical AI
6. Let’s stop talking about “risks of AI bias”, and instead start deciding what we want the world to look like
7. The Discriminating (Pricing) Actuary

Tutorials #

The document will all questions and solutions is available here: Tutorial set.

Note that solutions will be gradually added to that same document. Hence it is not recommended to print it, as it will regularly change (typos will also dynamically be corrected).

This week #

This week, tutorials will focus on simple interest ( week 1 materials).

Note that due to the COVID-19 restrictions in Victoria, all tutorials will be on Zoom; follow the links under Zoom on Canvas.

Here the recording available for Week 2:

If you wish to watch the embedded videos from Lecture Capture, you need to have logged in and entered Lecture Capture via Canvas once for each session. This is to restrict access to students enrolled at the University of Melbourne only.

Next week (week 3) #

Next week, we will discuss the week 2 set of “tutorial questions” (chapter 2). Solutions will be made available at the end of next week (3).

Later (week 4+) #

After next week (week 4+), you should do the “review questions” for week 2. Solutions will be available at the end of week 4.

Additional questions #

The “additional questions” are here for reinforcement or revision, but are not the main focus of the tutorials. Solutions for those exercises are already available.

Preparation for assessment #

Participation and Yellowdig (10%) #

• Connect to Yellowdig, ask questions, help others

Mid-semester (10%) and final (70%) exams #

• Nothing to do for now - just don’t fall behind 😄.

Assignment (10%) #

• Nothing to do for now.

References #