Postgraduate course

Life Insurance Mathematics

Teaching semester

Every second spring - even-numbered years.

Objectives and Content

The course gives an introduction in classical interest rate theory and basic mortality statistics. Calculation of net premiums and premium reserves are treated for various insurance covers for one or several lives. The problem of adding expenses and returning bonus is also covered.

Learning Outcomes

After completed course, the students are expected to be able to:

  • Know the elementary interest rate theory. Be able to calculate with the different types of loan: fixed loan, series loan and annuities.
  • Know mortality theory: the hazard function, remaining life length and standard expected life distributions, and select mortality.
  • Insurance of a single life and multiple-life insurance: pure endowment, term insurance and endowment insurance. Calculating premiums using the equivalence principle.
  • Calculate the different categories of expenses associated with the insurance.
  • Deduce Thiele's differential equations for different types of life insurance.
  • Calculate safety loadings and different kinds of bonus schemes.

Required Previous Knowledge


Recommended Previous Knowledge

STAT220 Stochastic Processes

Forms of Assessment

Written examination: 5 hours

Examination support materials: Non- programmable calculator, according to model listed in faculty regulations

Examination only once a year.

Grading Scale

The grading scale used is A to F. Grade A is the highest passing grade in the grading scale, grade F is a fail.


Contact Information


Exam information

  • For written exams, please note that the start time may change from 09:00 to 15:00 or vice versa until 14 days prior to the exam. The exam location will be published 14 days prior to the exam. Candidates must check their room allocation on Studentweb 3 days prior to the exam.

  • Type of assessment: Written examination

    22.05.2020, 09:00
    5 hours
    Withdrawal deadline