Simon Fraser University
Engaging the World

Course Outlines

Fall 2025 - RISK 802 G100

Advanced Models and Methods for Long-Term Insurance (3)

Class Number: 7514

Delivery Method: In Person

Overview

  • Course Times + Location:

    Sep 3 – Dec 2, 2025: Mon, 10:30–11:20 a.m.
    Burnaby

    Sep 3 – Dec 2, 2025: Thu, 10:30 a.m.–12:20 p.m.
    Burnaby

  • Exam Times + Location:

    Dec 6, 2025
    Sat, 3:30–6:30 p.m.
    Burnaby

  • Corequisites:

    RISK 801.

Description

CALENDAR DESCRIPTION:

Advanced models and methods used in the valuation and management of long-term insurance coverages. Topics include cash-flow based profit analysis of modern life insurance products (universal life insurance, equity-linked insurance, and contracts with embedded options), stochastic pricing and reserving, and stochastic longevity models. Students with credit for RISK 412 may not take this course for further credit.

COURSE DETAILS:

Outline:
 
This course covers advanced topics in long-term insurance, corresponding to part of the syllabus for the ALTAM exam of the Society of Actuaries. The topics include:
 
1. Review of pricing and reserving with a single decrement; introduction to multiple decrements.
2. Profit testing principles, measures, and applications.
3. Universal life insurance: Features, types, and profit testing.
4. Embedded options in life insurance and annuity products: Types of guarantees, pricing, reserving, funding methods, and profit testing.
5. Equity-linked insurance: Products, profit testing, and stochastic pricing and reserving.
6. Stochastic longevity models and their actuarial applications.
 
This course is part of the University Accreditation Program and meets specific requirements set by the Canadian Institute of Actuaries (CIA). Please consult the CIA website for full details on CIA accreditation.
 

Grading

  • Assignments 15%
  • Midterm Exam 30%
  • Final Exam 35%
  • Project 20%

NOTES:

Above grading is subject to change.

Materials

REQUIRED READING:

Actuarial Mathematics for Life Contingent Risks, 3rd Ed., 2020 by Dickson, C.M.D., Hardy, M.R., and Waters, H.R. Publisher: Cambridge University Press.
ISBN: 978-1-10847-808-3

REQUIRED READING NOTES:

Your personalized Course Material list, including digital and physical textbooks, are available through the SFU Bookstore website by simply entering your Computing ID at: shop.sfu.ca/course-materials/my-personalized-course-materials.

Graduate Studies Notes:

Important dates and deadlines for graduate students are found here: http://www.sfu.ca/dean-gradstudies/current/important_dates/guidelines.html. The deadline to drop a course with a 100% refund is the end of week 2. The deadline to drop with no notation on your transcript is the end of week 3.

Registrar Notes:

ACADEMIC INTEGRITY: YOUR WORK, YOUR SUCCESS

At SFU, you are expected to act honestly and responsibly in all your academic work. Cheating, plagiarism, or any other form of academic dishonesty harms your own learning, undermines the efforts of your classmates who pursue their studies honestly, and goes against the core values of the university.

To learn more about the academic disciplinary process and relevant academic supports, visit: 


RELIGIOUS ACCOMMODATION

Students with a faith background who may need accommodations during the term are encouraged to assess their needs as soon as possible and review the Multifaith religious accommodations website. The page outlines ways they begin working toward an accommodation and ensure solutions can be reached in a timely fashion.