SDST3953 Fundamentals of actuarial practice (6 credits) Academic Year 2025
Offering Department SCDS (Department of Statistics and Actuarial Science) Quota ---
Course Co-ordinator Dr K P Wat, SCDS (Department of Statistics and Actuarial Science) < watkp@hku.hk >
Teachers Involved (Dr K P Wat,Statistics & Actuarial Science)
Course Objectives This course teaches students about the business environment and exposes them to practical real-world situations using the actuarial control cycle as a framework.
Course Contents & Topics This course provides an overview on selected materials relating to the following topics: Role of the Professional Actuary, External Forces, Risk in Actuarial Problems, Design and Pricing of Actuarial Solutions. Emphasis will be placed on applications to various financial security programmes including individual life insurance, group insurance, social security plans, retirement plans, investment funds and property and casualty insurance.
Course Learning Outcomes
On successful completion of this course, students should be able to:

CLO 1 provide introductory description of financial security systems, common actuarial techniques and practical experiences
CLO 2 describe actuarial practices, principles, approaches, methods, commonalities, problems and solutions
CLO 3 explain actuarial practices across the traditional areas of practice on behalf of financial security system providers or as a consultant to those providers
CLO 4 apply actuarial skills in nontraditional and emerging areas of practice
CLO 5 provide context for the specific mathematical and technical skills developed in the basic actuarial courses
CLO 6 communicate technical information and participate in peer review
CLO 7 manage uncertainty by responding to questions in ambiguous or open-ended situations with limited time to prepare or react
CLO 8 prepare for the professional role as an Associate of the Society of Actuaries
Pre-requisites
(and Co-requisites and
Impermissible combinations)		 Pass in SDST3901.
Only for students admitted in 2025 and thereafter.
Course Status with Related Major/Minor /Professional Core 2U000C00 Course not offered under any Major/Minor/Professional core
2024 BSc in Actuarial Science ( Disciplinary Elective )
2024 Minor in Actuarial Studies ( Disciplinary Elective )
2023 BSc in Actuarial Science ( Disciplinary Elective )
2023 Minor in Actuarial Studies ( Disciplinary Elective )
2022 BSc in Actuarial Science ( Disciplinary Elective )
2022 Minor in Actuarial Studies ( Disciplinary Elective )
2021 BSc in Actuarial Science ( Disciplinary Elective )
2021 Minor in Actuarial Studies ( Disciplinary Elective )
Course to PLO Mapping 2024 BSc in Actuarial Science < PLO 2,4,5,6 >
2023 BSc in Actuarial Science < PLO 2,4,5,6 >
2022 BSc in Actuarial Science < PLO 2,4,5,6 >
2021 BSc in Actuarial Science < PLO 2,4,5,6 >
Offer in 2025 - 2026 Y        1st sem    Examination No Exam     
Offer in 2026 - 2027 Y
Course Grade A+ to F
Grade Descriptors
A Demonstrate thorough mastery at an advanced level of extensive knowledge and skills required for attaining all the course learning outcomes. Show strong analytical and critical abilities and logical thinking, with evidence of original thought, and ability to apply knowledge to a wide range of complex, familiar and unfamiliar situations. Apply highly effective organizational and presentational skills.
B Demonstrate substantial command of a broad range of knowledge and skills required for attaining at least most of the course learning outcomes. Show evidence of analytical and critical abilities and logical thinking, and ability to apply knowledge to familiar and some unfamiliar situations. Apply effective organizational and presentational skills.
C Demonstrate general but incomplete command of knowledge and skills required for attaining most of the course learning outcomes. Show evidence of some analytical and critical abilities and logical thinking, and ability to apply knowledge to most familiar situations. Apply moderately effective organizational and presentational skills.
D Demonstrate partial but limited command of knowledge and skills required for attaining some of the course learning outcomes. Show evidence of some coherent and logical thinking, but with limited analytical and critical abilities. Show limited ability to apply knowledge to solve problems. Apply limited or barely effective organizational and presentational skills.
Fail Demonstrate little or no evidence of command of knowledge and skills required for attaining the course learning outcomes. Lack of analytical and critical abilities, logical and coherent thinking. Show very little or no ability to apply knowledge to solve problems. Organizational and presentational skills are minimally effective or ineffective.
Communication-intensive Course N
Course Type Lecture-based course
Course Teaching
& Learning Activities
Activities Details No. of Hours
Lectures 36.0
Tutorials 12.0
Reading / Self study 100.0
Assessment Methods
and Weighting
Methods Details Weighting in final
course grade (%)		 Assessment Methods
to CLO Mapping
Presentation Oral presentation, interim report and peer review 30.0 4,5,6,7
Project reports Written report 30.0 4,5,6
Test In-class quizzes, discussions and participation 40.0 1,2,3,4,5,6,7,8
Required/recommended reading
and online materials		 Klugman, S. A. (2012). Understanding Actuarial Practice. Society of Actuaries.
Bellis, C., Lyon, R., Klugman, S., and Shepherd, J. (2010). Understanding Actuarial Management: The Actuarial Control Cycle (2nd Edition). Institute of Actuaries of Australia.
Brown, R. L. and Lennox, W. S. (2015). Introduction to Ratemaking and Loss Reserving for Property and Casualty Insurance (4th Edition). ACTEX Publications, Inc.
Segal, S. (2011). Corporate Value of Enterprise Risk Management: The Next Step in Business Management. Wiley.
Course Website http://moodle.hku.hk
Additional Course Information