SDST3956 Life contingencies III (6 credits) Academic Year 2025
Offering Department SCDS (Department of Statistics and Actuarial Science) Quota ---
Course Co-ordinator Prof T Boonen, SCDS (Department of Statistics and Actuarial Science) < tjboonen@hku.hk >
Teachers Involved (Prof T Boonen,Statistics & Actuarial Science)
Course Objectives This course covers concepts and methods in life contingencies that are used in the valuation and financing of long-term actuarial plans and products.
Course Contents & Topics The following topics will be covered: Fundamentals of pension plans; pricing valuation and funding of pension obligations; universal life insurance; options that are embedded in life insurance and annuity contracts.
Course Learning Outcomes
On successful completion of this course, students should be able to:

CLO 1 calculate the pension benefits in accordance with the provisions of a pension plan
CLO 2 perform pension valuation and funding calculations
CLO 3 describe the key features of universal life insurance and perform profit tests
CLO 4 define and calculate payoffs under various options embedded in insurance and annuity contracts
CLO 5 value the guaranteed minimum death benefit and the guaranteed minimum accumulation/maturity benefit using the Black-Scholes model
CLO 6 comment on the risk management of various options embedded in insurance products
Pre-requisites
(and Co-requisites and
Impermissible combinations)		 Pass in SDST3909; and
For BSc(Actuarial Science) students only.
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 )
2023 BSc in Actuarial Science ( Disciplinary Elective )
2022 BSc in Actuarial Science ( Disciplinary Elective )
2021 BSc in Actuarial Science ( Disciplinary Elective )
Course to PLO Mapping 2024 BSc in Actuarial Science < PLO 2,5 >
2023 BSc in Actuarial Science < PLO 2,5 >
2022 BSc in Actuarial Science < PLO 2,5 >
2021 BSc in Actuarial Science < PLO 2,5 >
Offer in 2025 - 2026 Y        1st sem    Examination Dec     
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. Organization 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
Assignments Coursework (assignments, tutorials, and a class test) 25.0 1,2,3,4,5,6
Examination One 3-hour written examination 75.0 1,2,3,4,5,6
Required/recommended reading
and online materials		 Dickson, D.C.M., Hardy, M.R., and Waters, H.R.: Actuarial Mathematics for Life Contingent Risks (Cambridge University Press, 2020, 3rd edition)
Anderson, A.W., Pension Mathematics for Actuaries (ACTEX Publications, 2006, 3rd edition)
Course Website http://moodle.hku.hk
Additional Course Information NIL