Macquarie University

General Insurance Pricing and Reserving - ACST357

This unit examines the use of statistical models in general insurance. The models include those used in time series analysis, generalised linear statistical modelling and runoff triangle models. Time series models are considered for both single and multiple time series. These models are often used for forecasting and inferring the behaviour of times series. Generalised linear models are used in the pricing of insurance such as automobile or homeowner insurance. Runoff triangle models are used to predict outstanding insurance liabilities. The use of no claim discount systems as a method of experience rating is also described. A good knowledge of the material covered in STAT271 is essential. Students should understand regression analysis, and the nature and use of a statistical model. Students gaining a grade of credit or higher in both ACST356 and ACST357 are eligible for exemption from subject CT6 of the professional exams of the Institute of Actuaries of Australia.