Week 3

Overview #

This week, we will cover the following topics:

• Actuarial Practice:
  • A discussion of risk management and climate risk from an actuarial perspective
• Actuarial Techniques:
  • The concept of compound interest in the Time Value of Money chapter: how can we value regular payments? (annuities)

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: Risk Management and Climate Risk

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 - Annuities #

Read: Time Value of Money - Compound Interest - Annuities

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. The world needs to wake up to long-term risks
2. Interview with Gloria Yu
3. Actuaries Institute "Climate Change: Public Policy Statement"
4. Australian Actuaries Climate Index
5. Ringing the bells of climate change
6. Actuaries Institute "Climate Change: Public Policy Statement"
7. The role of actuaries in climate risk

Optional #

1. Read Section 2.2.2-2.2.3 of Atkinson and Dickson (2011).
2. Impact of Covid-19 on insurance by Marsh
3. Actuaries Institute Climate Risk Working Group
4. Climate Change at the 20/20 All-Actuaries Virtual Summit
5. Polar Vortex: a counterintuitive threat of climate change?
6. Coastal erosion and insurance

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 compound interest ( week 2 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 3:

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 4) #

Next week, we will discuss the week 3 set of “tutorial questions” (chapter 4). Solutions will be made available at the end of the week (4).

Later (week 5+) #

After next week (week 5+), you should do the “review questions” for week 3. Solutions will be available at the end of week 5.

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 #

• Draft your own summary for week 2’s technical topics, as well as practice discussions

Assignment (10%) #

• Nothing to do for now.

References #