CHRIST (Deemed to University), Bangalore

DEPARTMENT OF PROFESSIONAL STUDIES

School of Business and Management

Syllabus for
Master of Science (Actuarial Science)
Academic Year  (2024)

 
1 Semester - 2024 - Batch
Course Code
Course
Type
Hours Per
Week
Credits
Marks
MAS112 BRIDGE COURSE IN ACTUARIAL MATHEMATICS Skill Enhancement Courses 4 0 0
MAS131 FINANCIAL MATHEMATICS AND LIFE CONTINGENCIES-I Core Courses 4 4 100
MAS132 ACTUARIAL STATISTICS - I Core Courses 4 4 100
MAS133 BUSINESS FINANCE-I Core Courses 4 4 100
MAS134 LIFE INSURANCE AND PENSIONS Core Courses 4 4 100
MAS135 BANKING PRACTICES Core Courses 4 4 100
MAS171 FINANCIAL MATHEMATICS AND LIFE CONTINGENCIES USING EXCEL - I Core Courses 2 2 50
MAS172 ACTUARIAL STATISTICS USING R PROGRAMMING-I Core Courses 2 2 50
2 Semester - 2024 - Batch
Course Code
Course
Type
Hours Per
Week
Credits
Marks
MAS231 FINANCIAL MATHEMATICS AND LIFE CONTINGENCIES-II - 4 4 100
MAS232 ACTUARIAL STATISTICS - II - 4 4 100
MAS233 BUSINESS FINANCE-II - 4 4 100
MAS234 RISK MODELLING AND SURVIVAL ANALYSIS-I - 4 4 100
MAS235 BUSINESS ECONOMICS -I - 4 4 100
MAS271 FINANCIAL MATHEMATICS AND LIFE CONTINGENCIES USING EXCEL - II - 2 2 50
MAS272 ACTUARIAL STATISTICS USING R PROGRAMMING-II - 2 2 50
MAS273 RISK MODELLING AND SURVIVAL ANALYSIS USING R PROGRAMING - I - 2 2 50
3 Semester - 2023 - Batch
Course Code
Course
Type
Hours Per
Week
Credits
Marks
MAS331 FINANCIAL MATHEMATICS AND LIFE CONTINGENCIES-III Core Courses 4 4 100
MAS332 FINANCIAL ENGINEERING I Core Courses 4 4 100
MAS333 RISK MODELLING AND SURVIVAL ANALYSIS - II Core Courses 4 4 100
MAS334 GENERAL AND HEALTH INSURANCE Core Courses 4 4 100
MAS335 BUSINESS COMMUNICATION Core Courses 4 4 100
MAS351 FINANCIAL MATHEMATICS AND LIFE CONTINGENCIES USING EXCEL - II Core Courses 3 3 50
MAS352 RISK MODELLING AND SURVIVAL ANALYSIS USING R PROGRAMING - II Core Courses 3 3 50
MAS353 FINANCIAL ENGINEERING USING EXCEL - I Core Courses 2 2 50
4 Semester - 2023 - Batch
Course Code
Course
Type
Hours Per
Week
Credits
Marks
MAS431 RISK MODELLING AND SURVIVAL ANALYSIS-III - 4 4 100
MAS432 BUSINESS ECONOMICS-II - 4 4 100
MAS433 FINANCIAL ENGINEERING-II - 4 4 100
MAS434 RESEARCH METHODOLOGY - 4 4 100
MAS435 BUISNESS MODELS - 2 2 50
MAS451 FINANCIAL ENGINEERING USING EXCEL - II - 2 2 50
MAS481A RESEARCH PROJECT - 0 6 100
MAS481B INTERNSHIP - 0 6 100
    

    

Introduction to Program:

Our Motto: To persevere and actuate in the professional world of actuarial Science by imbibing the right attitude, skills, knowledge, ethics and principles.

M Sc Actuarial Science is designed to give candidates from quantitative, commerce and Economic backgrounds an opportunity to launch their careers in Actuarial Science. It is a discipline that applies Mathematical and Statistical methods to assess risk in the insurance and financial industries. This course provides a solid foundation in the core principles and techniques of Actuarial Science. MSc Actuarial Science is a two-year postgraduate course spread over four semesters comprising modules on Financial Mathematics, Actuarial Statistics, Insurance and Economics. The course covers key areas in global business with in-depth coverage of Risk Management opening a plethora of opportunities in the insurance and global investment sectors. The course is dedicated towards dealing with real-world scenarios and application of the analytical process that students are trained for; practical application, case studies and market analysis with experts guiding individuals will be an important aspect of the learning process. A qualified person in MSc actuarial science would be having a basic foundation and a solid platform from which they can proceed to becoming an actuary. They can use their quantitative skills to analyze data from the past and present, in order to predict the future and help others make prudent and intelligent financial decisions.

Programme Outcome/Programme Learning Goals/Programme Learning Outcome:

PO1: Apply the fundamental theories of actuarial science as applicable in various domains of the industry

PO2: Demonstrate expertise in Mathematics and Statistics to perform Actuarial modeling to formulate solutions for problems concerning the industry

PO3: Exhibit proficiency in the areas of finance and economics and assume the role of actuarial experts and offer pertinent consultancy services

PO4: Exhibit expertise in enterprise risk management and thereby equip organisations to manage risks effectively

PO5: Apply advanced knowledge of research and statistics to conduct independent research investigations and formulate solutions to complex problems of insurance and actuarial science by applying right tools.

PO6: Demonstrate leadership traits, communication skills and innovative thinking for optimal performance in personal, professional, societal and environmental domains.

PO7: Exhibit ethical values, social sensitivity and sense of equality to embrace diversity and inclusion and promote peaceful co-existence

Assesment Pattern

1. Examinations, Question Paper Pattern and Pass Mark/Grade.

 

For all semesters there shall be a Mid Semester Examination (MSE) for 50 marks per subject and an End Semester Examination (ESE) for 100 marks per subject.

Pattern of question paper for 100 marks of 3 hours’ duration will be as follows:

There will be five compulsory questions, each carrying twenty marks.

Minimum marks required for passing ESE shall be as under:

SEMESTER I to IV: 40% per paper Aggregate Average 50%

 

2. Grading Pattern:

Grading pattern will be the same as approved by the University for PG Courses as detailed herein below:

 

Percentage

Grade

Grade Point – 4 Point Scale

Grade Point – 10 Point Scale

Interpretation

Class

80 and Above

A+

  4.00

10.00

Excellent

First Class with Distinction

75-79

A

3.75

9.38

Very Good

 

First Class

 

70-74

A-

  3.50

8.75

Good

65-69

B+

  3.0

7.50

Good

60-64

B

  2.5

6.25

Above Average

55-59

C+

  2.0

5.00

Average

 

Second Class

 

50-54

C

1.5

3.75

Satisfactory

40-49

C-

  1.0

2.50

Exempted if Aggregate is more than 50%

Pass Class

39 and Below

F

    0

0

Fail

Fail

 

 

3. Continuous Internal Assessment (CIA):

The course shall be subject to CIA and will be in the same pattern as approved by the University in respect of other PG Courses. The applicable evaluations are CIA-1 (based on Mid-Sem examination), CIA –2 and CIA –3 based on internals.

 

Examination And Assesments

Department of Professional Studies follows a rigorous system of continuous evaluation, and the assessment events include quizzes, tests, assignments, mid-term and end-term exams, individual/group project work, presentations etc.  

Students are evaluated for each course on the basis of written examination and continuous internal assessments. Each paper carries maximum of 100 marks and is evaluated as follows:

End Semester Examination (ESE)50%

Mid Semester Examination (CIA-2)25%

Continuous Internal Assessment (CIA - 1 & 3)20%

Attendance  05%

Total 100%

 

●Written Examinations consists of: 

▪Mid Semester Exam – 50 Marks (2 hours duration)

▪End Semester Exam – 100 Marks (3 hours duration)

●A student should secure a minimum of 50% Marks in the ESE to pass in that paper. 

●In aggregate for each paper, for internal and end semester put together, at least 40 Marks out of 100 must be secured to pass in that paper. 

 

MAS112 - BRIDGE COURSE IN ACTUARIAL MATHEMATICS (2024 Batch)

Total Teaching Hours for Semester:15
No of Lecture Hours/Week:4
Max Marks:0
Credits:0

Course Objectives/Course Description

 

This course is designed to bridge the gap between maths students and commerce students and give each student a basic understanding and working of mathematical concepts required to study topics Actuarial statistics and financial mathematics.

Course Outcome

CO1: Understand basics of relations and functions

CO2: Understand types of progressions

CO3: Solve basic calculus problems

CO4: Understand Probability and concept of variables

Unit-1
Teaching Hours:4
Set Theory, Relations and Functions
 

Set Theory and operations on Sets, Function-Definition and types. Relations-Definition and types

Unit-2
Teaching Hours:3
Sequence, Series and matrices
 

Definitions and Problems - Arithmetic and Geometric Progression. Matrix and operations on matrices

Unit-3
Teaching Hours:4
Differential and Integral Calculus
 

Basics of Limit, continuity, Differentiation and integration of algebraic expressions, log,

Unit-4
Teaching Hours:4
Probability
 

Probability-basics and combinations- random variable

Text Books And Reference Books:

1.  H. Anton, I Bivens and S Davis, Calculus, Wiley; Tenth edition, 2015

2. S. Narayan, Differential Calculus, S Chand; Fifteenth edition 2006

Essential Reading / Recommended Reading

1.    S.K. Sharma and G Kaur, Business Mathematics, S Chand, 2019

2.   S. D. Promislow, Fundamentals of Actuarial Mathematics, Wiley; 3rd edition 2014

Evaluation Pattern

The course consists of fifteen hours of interactive sessions and an internal examination designed by the department which is compulsory for all those who are not successful in the proficiency test and also meant for non-maths students to acquaint themselves in the chosen stream of learning. Hence, first year students undergo this proficiency test and to secure the cut-off marks set by the Department year-on-year basis. After the bridge course class sessions an internal examination will be conducted and the student need to score 40% of 50 Marks. Otherwise those students need to appear for a supplementary exam till they clear. Students’ performance will be graded on a pass/fail basis and will not carry any credits.

MAS131 - FINANCIAL MATHEMATICS AND LIFE CONTINGENCIES-I (2024 Batch)

Total Teaching Hours for Semester:60
No of Lecture Hours/Week:4
Max Marks:100
Credits:4

Course Objectives/Course Description

 

The Master of Science in Actuarial Science program is designed to prepare students to pursue careers in quantitative finance. The aim of this course is to provide grounding in Financial Mathematics and their applications. Increasingly firms of all types, but especially financial institutions, investment banks, and commodities firms, rely upon highly sophisticated mathematical models to identify, measure, and manage risk.Topics covered also include the life table, life assurance contracts, life annuity contracts.

Course Outcome

CO1: Understand the principles of Actuarial modelling and cashflow models and apply them in real-world problem

CO2: Apply the financial mathematics concepts like time value of money, calculation of present values and accumulated value of cashflows, annuities, project appraisals, NPV, loan schedule etc.

CO3: Understand the concepts of financial instruments, cashflows associated with different assets classes, present value and accumulated value of investments, project appraisal, net present value, capital repaid & interest paid on loans and preparing loan schedules etc. and would be in a position to pass the exams conducted by the institute of actuaries of UK and India.

CO4: Apply the life insurance concepts in introducing various life insurance products and their use.

CO5: Evaluate the life insurance products by financial models

Unit-1
Teaching Hours:15
Data analysis, Principles of Actuarial modelling and Cashflow models
 

Aims of data analysis, The data analysis process, Data Sources and Reproducible research, Principles of actuarial modeling from the new course material- Models, Modeling-the benefits and limitations, Stochastic and deterministic models, Discrete and continuous state spaces and time sets, Scenario-based and proxy models, Suitability of a model, Short term and long term properties of a model, Analysis the output of a model, Sensitivity testing and Communication of the results. Cashflow process, Example sof cashflow scenarios, Insurance contracts – Pure endowment, Endowment assurance, term assurance, Contingent annuity, Car insurance policy, Health cash plan

Unit-2
Teaching Hours:15
Time Value of Money, Interest Rates and Accumulation & Discounting
 

Interest - Simple interest, compound interest, Accumulations factors, Principle of consistency, Present Values, Discount Rates, Effective rates of interest and discount, Equivalent Rates, Nominal Rates of Interest and Discount, Accumulating and discounting using nominal rate of interest and discount, The force of Interest, Accumulating and discounting using force of interest, Relationships between effective, nominal and force of interest, Force of interest as a function of time, Definition of real and money rate of interest, Usefulness of real and money interest rates, Present values of cashflows, Discrete and continuous cashflows, Valuing cashflows, Constant interest rates, Payment stream, Sudden changes in interest rates.

Unit-3
Teaching Hours:15
Annuities - Level and Varying Annuities
 

 

Present values and future values of an annuity - payments made in arrear, payment made in advance, perpetuities. Discounting and accumulation - Present value and accumulated value of a stream of payments using specified interest rates, net present value and deferred annuities. Increasing annuity immediate, increasing annuity due, decreasing annuity immediate, decreasing annuity due, annuity relationships, continuously payable annuity, continuously varying annuities - continuously increasing annuity and continuously decreasing annuity.

Unit-4
Teaching Hours:15
The Life Table, LifeAssurance Contracts and Life Annuity Contracts
 

Constructing a life table, using the life table, the pattern of human mortality, life table functions at non-integer ages, method 1 - uniform distribution of deaths (UDD), methods 2 - constant force of mortality (CFM), the general patterns of mortality, mortality characteristics, the shape of qx, lx, dx, using the life table to evaluate means and variances, evaluating means and variances without use of the life table, select mortality, displaying select rates, constructing select and ultimate life tables, using tabulated select life table functions, evaluating means and variances using select mortality.Life assurance contracts - pricing of life insurance contracts, equations of value, allowance for investment income, present value random variables, expected present value, variance of the present value random variables for life assurance contracts, life assurance benefits payable immediately on death, claim acceleration approximation. Life annuity contracts - annuity due, temporary annuity, temporary annuity due, deferred annuities, deferred annuities due, continuous annuities and evaluation of assurance and annuities.

Text Books And Reference Books:

 1. Stephen G. Kellison, The theory of interest. Irwin Mc Graw Hill, 2008.

2. Steven Roman, Introduction to the Mathematics of Finance: From risk management to options pricing. Springer, 2004.

Essential Reading / Recommended Reading

 1. Newton L. Bowers, Actuarial Mathematics. The society of Actuaries, 1986.

2. David C. M. Dickson, Mary R. Hardy, Howard R. Waters, Actuarial Mathematics for life contingent risk. Cambridge University Press, 2009.

Evaluation Pattern

Department of Professional Studies follows a rigorous system of continuous evaluation, and the assessment events include quizzes, tests, assignments, mid-term and end-term exams, individual/group project work, presentations etc.  

Students are evaluated for each course on the basis of written examination and continuous internal assessment. Each paper carries maximum of 100 marks and is evaluated as follows:

End Semester Examination (ESE)                                      :           50%

Mid Semester Examination (CIA-2)                                   :           25%

Continuous Internal Assessments (CIA- 1 & 3)                 :           20%

Attendance                                                                             :           05%

Total                                                   :          100%                                   

·       Written Examinations consists of:

§  Mid Semester Exam – 50 marks (2 hours’ duration)

§  End Semester Exam – 100 marks (3 hours’ duration)

·       A student should have secured minimum 40% marks in the ESE to pass in that paper.

 

 

·       In aggregate for each paper, for internal and end semester put together, at least 40 marks out of 100 must be secured to pass in that paper. 

MAS132 - ACTUARIAL STATISTICS - I (2024 Batch)

Total Teaching Hours for Semester:60
No of Lecture Hours/Week:4
Max Marks:100
Credits:4

Course Objectives/Course Description

 

The aim of this course is to provide grounding knowledge in the aspects of Statistics and Statistical modeling that are of relevance to actuarial work.

Course Outcome

CO1: Understand the different probability distributions, their properties and their applications

CO2: Understand joint distributions and conditional expectations of these distributions

CO3: Understand the application and importance of the Central Limit Theorem in statistics

CO4: Understand the purpose of sampling characteristics of different sampling distributions and its applications.

CO5: Understand the core of statistical inference Construction of different estimators and their properties; Construction of confidence intervals

Unit-1
Teaching Hours:20
Probability Distributions & Generating Functions
 

Definition and important characteristics of discrete and continuous distributions- Discrete: geometric, binomial, negative binomial, hypergeometric, Poisson, and uniform on a finite set. Continuous: normal, lognormal, exponential, gamma, chi-square, t, F, beta and uniform on an interval. Poisson Process. Generate basic discrete and continuous random variables using the inverse transform method. R Programming. Definition and derivation of moment generating function of random variables, cumulant generating function and probability generating function of discrete, integer-valued random variables; generating moments and cumulants of random variables, by expansion as a series or by differentiation as appropriate

Unit-2
Teaching Hours:10
Joint distributions and Conditional Expectations
 

Jointly distributed random variables, marginal and conditional distributions; probability functions of marginal and conditional distributions; expected value of a function of two jointly distributed random variables; covariance and correlation; probability function of sum of two independent random variables as the convolution of two functions; mean and variance of linear combination of random variables; conditional expectations.

Unit-3
Teaching Hours:10
Central Limit Theorem and Sampling
 

Central limit theorem for independent, identically distributed random variables and its applications. Population, sample, parameter and statistic, random sample, sampling distributions of a statistics; sampling distribution of sample mean, sample variance in terms of the population mean, variance and sample size; sampling distribution of t-statistics, F-statistic, and Chi-square statistic and their statistical properties and applications.

Unit-4
Teaching Hours:20
Statistical Inference
 

 

Concepts of estimator, estimate; method of moments and method of maximum likelihood estimation for constructing estimators of population parameters; Properties of best estimator: unbiasedness, consistency, efficiency and mean square error; asymptotic distribution of maximum likelihood estimators; concept of confidence interval, construction of confidence intervals for an unknown parameter using sampling distributions, mean and variance of normal distribution, binomial probability and Poisson mean, two-sample situations involving the normal distribution and binomial and Poisson distributions using normal approximation.

Text Books And Reference Books:

1. S. C. Gupta and V. K. Kapoor, Fundamentals of Mathematical Statistics. New Delhi, Sultan Chand and sons, 11th ed. 2002. (reprint 2011)

2. J. E. Freund, Mathematical Statistics. New Delhi, Prentice hall, 7th ed. 2004.

Essential Reading / Recommended Reading

1. P. Mukhopadhyay, Mathematical Statistics, New Central Book Agency, 3rd ed. 2006.

2. Hogg et al. Introduction to Mathematical Statistics, Pearson Education, 6th ed. 2005. (reprint 2009)

Evaluation Pattern

Department of Professional Studies follows a rigorous system of continuous evaluation, and the assessment events include quizzes, tests, assignments, mid-term and end-term exams, individual/group project work, presentations etc.  

Students are evaluated for each course on the basis of written examination and continuous internal assessment. Each paper carries maximum of 100 marks and is evaluated as follows:

End Semester Examination (ESE)                                      :           50%

Mid Semester Examination (CIA-2)                                   :           25%

Continuous Internal Assessments (CIA- 1 & 3)                 :           20%

Attendance                                                                             :           05%

Total                                                   :          100%                                   

·       Written Examinations consists of:

§  Mid Semester Exam – 50 marks (2 hours’ duration)

§  End Semester Exam – 100 marks (3 hours’ duration)

·       A student should have secured minimum 40% marks in the ESE to pass in that paper.

 

 

·       In aggregate for each paper, for internal and end semester put together, at least 40 marks out of 100 must be secured to pass in that paper. 

MAS133 - BUSINESS FINANCE-I (2024 Batch)

Total Teaching Hours for Semester:60
No of Lecture Hours/Week:4
Max Marks:100
Credits:4

Course Objectives/Course Description

 

The course focuses on financial decision making in the modern corporation. An introduction to accounting and interpretation of the accounting information is covered here. Core concepts are integrated into the standard theories of risk and return, valuation of assets and market structure.

Course Outcome

CO1: Understand and appreciate the various sources of finance for a business.

CO2: Understand the various forms of organisation along with its advantages and limitations

CO3: Appreciate the need for accounting and the concepts involved in developing accounting information

CO4: Understand the need for integrating the accounting information

CO5: Understand the purpose of interpreting the details provided by accounts from various stakeholders' point of view.

Unit-1
Teaching Hours:15
Introduction to Accounts
 

Introduction to accounts, accounting standards, basic accounting concepts, contents of annual report, director’s report, auditor’s report, international financial reporting standards, credit, debit, asset, liability, income, expense profit and loss account, balance sheet and cash flow statement.

Unit-2
Teaching Hours:15
Generating Accounts
 

Construct profit and loss account, balance sheet and cash flow statement.

Depreciation - concept, methods of calculation. Reserves - types and uses.

Unit-3
Teaching Hours:15
Group Accounts
 

Holding company, subsidiary company, minority holding, consolidated balance sheet. Understanding how goodwill arises on consolidation. Preparation of Insurance company accounts - technical and non-technical account, profit and loss accounts and balance sheet

Unit-4
Teaching Hours:15
Interpretation of financial information through ratios
 

Interpretation of accounts using accounting ratios, Accounting ratios to assess security of loan capital and their interpretation. Accounting ratios to enable shareholder analysis and their interpretation, limitations of accounts and Introduction to working capital management.           

Text Books And Reference Books:

1. Brealey, SC and Myers, RA, 2000, Principles of Corporate Finance, 6th ed, Irwin/McGraw-Hill 

2. Atrill, P and McLaney, E, 2015, Management Accounting for decision makers, 8th ed, Pearson

3. Berry, A and Jarvis, R, 2011, Accounting in a business context, 5th ed, Cengage

4. Sloman, J, Garratt, D, Guest, J and Jones, E, 2016, Economics for Business, 7th ed, Pearson

5. Leiwy, D and Perks, R, 2013, Accounting Understanding and Practice, 4th ed, McGraw-Hill

Essential Reading / Recommended Reading

1. Crowd funding regulation.  Available at: https://www.fca.org.uk

2. The Association of Chartered Certified Accountants, London, 2010, ‘Sustainability reporting matters. What are national governments doing about it?’.  Available at: http://www.accaglobal.com/content/dam/acca/global/PDF-technical/sustainability- reporting/tech-tp-srm.pdf

3. Companies Act, 2006, Contents of the strategic report. Available at: http://www.legislation.gov.uk/ukpga/2006/46/contents

4. FRC: The UK Corporate Governance Code, April 2016

5. The International Integrated Reporting Council, how to prepare an integrated report.  Available at: http://integratedreporting.org/. 

Evaluation Pattern

Department of Professional Studies follows a rigorous system of continuous evaluation, and the assessment events include quizzes, tests, assignments, mid-term and end-term exams, individual/group project work, presentations etc.  

Students are evaluated for each course on the basis of written examination and continuous internal assessment. Each paper carries maximum of 100 marks and is evaluated as follows:

End Semester Examination (ESE)                                      :           50%

Mid Semester Examination (CIA-2)                                   :           25%

Continuous Internal Assessments (CIA- 1 & 3)                 :           20%

Attendance                                                                             :           05%

Total                                                   :          100%                                   

·       Written Examinations consists of:

§  Mid Semester Exam – 50 marks (2 hours’ duration)

§  End Semester Exam – 100 marks (3 hours’ duration)

·       A student should have secured minimum 40% marks in the ESE to pass in that paper.

 

 

·       In aggregate for each paper, for internal and end semester put together, at least 40 marks out of 100 must be secured to pass in that paper. 

MAS134 - LIFE INSURANCE AND PENSIONS (2024 Batch)

Total Teaching Hours for Semester:60
No of Lecture Hours/Week:4
Max Marks:100
Credits:4

Course Objectives/Course Description

 

This course will make the students understand the domains of life insurance and pensions, develop an understanding of the different areas of risk management, techniques available to handle the same and focus on insurance as a risk management tool for individuals and corporates.  By virtue of this understanding, it also instills in students the ability to apply the principles of actuarial planning and control needed for the efficient functioning of providers of insurance products.

Course Outcome

CO1: Understand the different underlying principles of insurance and their applications.

CO2: Learn different types of products developed in individual and group insurance.

CO3: Develop a good understanding of the different risk management tools in life insurance and the role of actuaries towards the same.

CO4: Understand the different types of products used in individual and group pension schemes.

CO5: Develop a good understanding of the underlying mechanics of group gratuity and group superannuation schemes.

Unit-1
Teaching Hours:12
Introduction to Insurance
 

Introduction and Overview - Definition of risk and categories of risks, insurable risks, types of insurance, risk management and objectives. Key insurance concepts - Concept and role of insurance, fundamental principles, indemnity, insurable interest, subrogation, utmost good faith, contract conditions. Differences between life and non-life contracts, need for regulation and the role of the regulator in the insurance business, professionals in the insurance business-need for professionalism, intermediaries in the insurance contract. IRDA regulations on Actuaries, Financial planning - Needs analysis, life cycle planning, asset allocation and taxation.

Unit-2
Teaching Hours:24
Life Insurance Basics and Underwriting
 

Introduction to Life insurance contracts - Contract conditions and requirements. Types of life insurance products - term life insurance, whole life insurance, endowment policies, unit linked insurance plans and other related products. Riders to a life insurance policy - waiver of premium riders, disability benefit riders, accelerated benefit riders, how a rider works and the advantages of riders. Life insurance policy provisions - incontestability provision, grace period provision, reinstatement provision, operation of free look-in period etc. Life insurance policy beneficiaries - naming a beneficiary, change of beneficiary and related concepts. Factors determining the calculation of premium - understanding mortality. Life insurance underwriting: Life insurance underwriting - Need for risk classification and grouping of risks, agents' role in underwriting, underwriting policy, process of underwriting and restrictions on post-selection underwriting. Documents and premium - Underwriting and actuarial framework. Methods of funding life insurance - Life insurance reserves. Channels of distribution, lapse and surrenders and its impact on insurance business. Reinsurance- need for reinsurance, types of reinsurance, treaty and facultative, proportionate and non-proportionate reinsurance.

Unit-3
Teaching Hours:12
Introduction to Group Insurance
 

Different types of group insurance schemes. Group term Insurance: Group OYRTA Plans, Employers Deposit Linked Insurance Scheme (EDLI), mortgage cover, graded cover, etc. Different types of groups and their characteristics from insurance point of view, benefits provided, group underwriting for employer-employee and other groups, premium rating, Expected claims cost, premium calculation for different group schemes, experience rating-its rationale and methods, prospective and retrospective rating. Group term products- UPR and IBNR Reserve, calculation of UPR and IBNR reserves for Group term policies. Social insurance programs in India.

Unit-4
Teaching Hours:12
Pension and Group Gratuity Schemes
 

 

Need for pension,  role of government in providing pensions, Employee Provident Fund, Employee Pension Scheme 1995, occupational pension schemes, individual personal pension plans, installation and operation of employer run pension schemes, defined  contribution and defined pension plans, associated risks to employer and employees,, insurer administer and self-administered pension schemes, exempt superannuation scheme,  income tax act and rules,  investment norms for self-administered pension schemes, insurer administered pension schemes, National Pensions Scheme, PFRDA and its regulatory aspects. Payment of gratuity act, installation and administration of a gratuity scheme, nature of gratuity liability, exempt gratuity scheme, income tax act and rules, insurance company administered and self-administered gratuity schemes, investment norms for self-administered gratuity schemes, insurer administered gratuity schemes- unit linked, variable insurance plans.

Text Books And Reference Books:

 

1. Kenneth Black and Harold D. Skipper, Life and Health Insurance. Pearson Education publication, 1999.

2. Emmett. J. Vaughan and Therese Vaughan, Fundamentals of risk and insurance. Wiley publications, 2011.

Essential Reading / Recommended Reading

 1. M.J.Mathews, Insurance-Principles and Practices.

2. Principles of Insurance :  A publication of the Insurance Institute of India.

3. IC 83: A publication of the Insurance Institute of India.

4. Practice of Life Insurance : A publication of the Insurance Institute of India

Evaluation Pattern

Department of Professional Studies follows a rigorous system of continuous evaluation, and the assessment events include quizzes, tests, assignments, mid-term and end-term exams, individual/group project work, presentations etc.  

Students are evaluated for each course on the basis of written examination and continuous internal assessment. Each paper carries maximum of 100 marks and is evaluated as follows:

End Semester Examination (ESE)                                      :           50%

Mid Semester Examination (CIA-2)                                   :           25%

Continuous Internal Assessments (CIA- 1 & 3)                 :           20%

Attendance                                                                             :           05%

Total                                                   :          100%                                   

·       Written Examinations consists of:

§  Mid Semester Exam – 50 marks (2 hours’ duration)

§  End Semester Exam – 100 marks (3 hours’ duration)

·       A student should have secured minimum 40% marks in the ESE to pass in that paper.

 

 

·       In aggregate for each paper, for internal and end semester put together, at least 40 marks out of 100 must be secured to pass in that paper. 

MAS135 - BANKING PRACTICES (2024 Batch)

Total Teaching Hours for Semester:60
No of Lecture Hours/Week:4
Max Marks:100
Credits:4

Course Objectives/Course Description

 

Banking is a long-established and honorable profession. No longer it’s a 3-6-3 rule driven industry as the banking sphere is undergoing huge sea change across the Globe. In this backdrop this course provides foundation knowledge that is required to give students a broad understanding of the roles, structure, and regulatory mechanism of banks. Further it explores the various risks encountered by a bank with its management strategies and the Banking Business Model. 

Course Outcome

CO1: Demonstrate knowledge and understanding of the operations of a Banking Institution in terms of Revenue, Costs, Cash Flows, ALM, and etc

CO2: Deconstruct the deposit and loan products offered in a banking operation

CO3: Interpret the regulatory framework and various financial and non-financial risks faced by banks with its Management aspects.

CO4: Paraphrase the Liquidity and Operational risk exposures of banking sector.

CO5: Formulate a bank's business strategy adhering the requirements of Capital and Liquidity framework

Unit-1
Teaching Hours:12
Primer on Banking Business
 

Evolution of Banks and Financial Intermediation - Banking – Definition – Functions and Types of Commercial Banking System – Indian Commercial Banking Structure – Consolidation and Competition in the  Banking Industry – Banking Activities and Services – Components of Bank’s Income and Costs – Asset and Liability Management (ALM) – ALM Committee (ALCO) – ALCO Policy - Bank Cash Flows – Banking Business Model.

Unit-2
Teaching Hours:12
Banking Products
 

Deposit Mobilization by Commercial Banks – Deposit Mix – Types of Deposits – Factors affecting Deposit Levels – Investment Banking Products - Lending of Money by Banks – Principles of Sound Lending – Various Forms of Advances: Cash Credit, Overdrafts, Purchasing and Discounting of Bills – Retail Lending by Banks - Modes of Creating Charges. 

Unit-3
Teaching Hours:12
Regulation of Banks and Credit Risk Management
 

Reserve Bank of India as Regulator of banks – RBI’s power to issue Directions – Regulation of Liquidity, Interest Rate, Payment System and Money Market Instruments – Maintenance of Policy Rates, Reserve Rates, Incremental Cash Reserve Ratio (ICRR), Variable Reverse Repo Rate (VRRR) – Maintenance of Liquid Assets – Basel Norms – Financial and Non-financial Risks - Credit Risk Principles – Credit Value-at-Risk (VaR) – Credit Limit - Credit Risk parameters for Risk and Regulatory Approaches

Unit-4
Teaching Hours:12
Liquidity and Operational Risk Exposures in Banking
 

Bank Liquidity Risk Management – Elements – Principles of Bank Liquidity Risk Management – Liquidity Policy Statement – Policy on Intra-group Lending – Liquid Asset Buffer (LAB) – Key Liquidity Metrics – Liquidity Coverage Ratio (LCR) – Net Stable Funding Ratio (NSFR) - Liquidity Risk Reporting – Overview of Operational Risk and its Framework – Measurement of Operational Risk: Basic Indicator Approach (BIA), Advanced Measurement Approach (AMA), and Loss Distribution Approach (LDA).

Unit-5
Teaching Hours:12
Bank Strategy
 

Sustainable Banking Business Model – Bank Strategy – Strategy Setting – Key Performance Indicators (KPI) – Elements of a Bank’s Strategic Plan - Bank Strategy-setting Cycle - Capital Management Policy and Strategy – Integrated Capital and Liquidity Management Strategy – Key Capital Considerations – Regulatory Capital Requirements - Internal Capital Adequacy Assessment Process (ICAAP) – Stress Testing.  

Text Books And Reference Books:

1.The Principles of Banking, Moorad Choudhry, Wiley (2022), ISBN: 9781119755685. 

2.Principles and Practices of Banking (2023), Indian Institute of Banking and Finance, Macmillan.  

 

Essential Reading / Recommended Reading

1.An Introduction to Banking: Principles, Strategy and Risk Management, Moorad Choudhry, Wiley (2018), ISBN: 9781119115892.

2.Banking Theory Law and Practice, Sundharam KPM, Varshney PN, 2019, Sultan Chand & Sons. 

3.Banking Law and Practice in India, M.L.Tannan, 2021, LexisNexis. 

4.Banking Law and Practice, R.K.Gupta, Research Publication. 

5.Banking Law: Private Transactions and Regulatory Frameworks, Andreas Kokkinis, Andrea Miglionico, 2021, Taylor & Francis. 

 

Evaluation Pattern

Department of Professional Studies follows a rigorous system of continuous evaluation, and the assessment events include quizzes, tests, assignments, mid-term and end-term exams, individual/group project work, presentations etc.  

Students are evaluated for each course on the basis of written examination and continuous internal assessment. Each paper carries maximum of 100 marks and is evaluated as follows:

End Semester Examination (ESE)                                      :           50%

Mid Semester Examination (CIA-2)                                   :           25%

Continuous Internal Assessments (CIA- 1 & 3)                 :           20%

Attendance                                                                             :           05%

Total                                                   :          100%                                   

·       Written Examinations consists of:

§  Mid Semester Exam – 50 marks (2 hours’ duration)

§  End Semester Exam – 100 marks (3 hours’ duration)

·       A student should have secured minimum 40% marks in the ESE to pass in that paper.

 

·       In aggregate for each paper, for internal and end semester put together, at least 40 marks out of 100 must be secured to pass in that paper. 

MAS171 - FINANCIAL MATHEMATICS AND LIFE CONTINGENCIES USING EXCEL - I (2024 Batch)

Total Teaching Hours for Semester:30
No of Lecture Hours/Week:2
Max Marks:50
Credits:2

Course Objectives/Course Description

 

This course provides a comprehensive introduction to business application software, including tools such as Microsoft Excel, Word, and PowerPoint. Students will learn how to use these tools to efficiently manage data, create professional documents and presentations, and automate common tasks. The course will also cover advanced features in Excel, including data analysis, macros, and pivot tables.

Course Outcome

CO1: Understand the basics of Microsoft Excel

CO2: Learn how to manage data and automate common tasks using Microsoft Excel

CO3: Develop skills in advanced features in Excel, including data analysis, macros, and pivot tables

CO4: Analyze data to create cash flow models, to calculate financial mathematics concepts like time value of money, calculation of present values and accumulated value of cash flows, annuities, project appraisals

Unit-1
Teaching Hours:8
Introduction to Microsoft Excel
 

Overview of Excel and its applications in business, Understanding the Excel interface and basic formulas, Data management and manipulation

Unit-2
Teaching Hours:10
Advanced Features in Microsoft Excel
 

Data analysis using Excel functions such as VLOOKUP, INDEX, and MATCH, Macros and VBA programming in Excel, Pivot tables and charts

Unit-3
Teaching Hours:12
Use of MS Excel to solve financial mathematics problems
 

Creation of financial models in excel, projection of cash flows of various financial assets using excel, solve for the price to be paid for financial assets, Preparation of loan schedules using excel and hence calculate the interest paid and capital outstanding for every future years

Text Books And Reference Books:

1. Stephen G. Kellison, The theory of interest. Irwin McGraw Hill, 2008.

2. Past year papers from IFoA and/or IAI.

Essential Reading / Recommended Reading

1. Newton L. Bowers, Actuarial Mathematics. The Society of Actuaries, Second ed. 1997.

2.Principles of Financial Modelling: Model Design and Best Practices Using Excel and VBA Book by Matthew Rees.

Evaluation Pattern

Department of Professional Studies follows a rigorous system of continuous evaluation, and theassessment events include quizzes, tests, assignments, mid-term and end-term exams,individual/group project work, presentations etc.

For this course, students are evaluated on the basis of continuous internal assessment

Continuous Internal assessments : 45 marks

Attendance : 05 marks

·

A student should have secured minimum 40% marks overall to pass in that paper.

MAS172 - ACTUARIAL STATISTICS USING R PROGRAMMING-I (2024 Batch)

Total Teaching Hours for Semester:30
No of Lecture Hours/Week:2
Max Marks:50
Credits:2

Course Objectives/Course Description

 

This course provides an introduction to the R programming language for data analytics and statistics. Students will learn how to use R to import, manipulate, analyze, and visualize data for business applications. They will also learn probability theory. The course will cover both basic and advanced topics in R, including data structures, programming, data analysis, and visualization. The course will also introduce students to popular R packages for data analytics, such as dplyr, ggplot2, and tidyr

Course Outcome

CO1: Understand the basics of the R programming language

CO2: Learn how to import, manipulate, analyze, and visualize data using R

CO3: Develop skills in advanced topics in R, including data structures, programming, data analysis, and visualization

CO4: Explore popular R packages for business analytics and their applications

CO5: Learn Statistics basics using R

Unit-1
Teaching Hours:6
Introduction to R Programming and Data Manipulation
 

Overview of R and its applications in business analytics. Understanding the R interface and basic data structures. Importing and cleaning data in R. Introducing dplyr package for data manipulation. Filtering, summarizing, and transforming data using dplyr

Unit-2
Teaching Hours:10
Introductory statistics
 

Discrete and continuous probability distributions

Unit-3
Teaching Hours:6
Sampling and Estimations using R
 

Central Limit Theorem; Sampling & Estimations 

Unit-4
Teaching Hours:6
Hypothesis testing using R.
 

Performing hypothesis testing using R

Unit-5
Teaching Hours:2
Application in Actuarial professional exams
 

Revision of modules covered with IfoA and IAI past papers practice

Text Books And Reference Books:

1. Data Analytics with R: A Hands-On Approach" by Raghav Bali, Dipanjan Sarkar, and Tarry Singh - 1st Edition, 2017

2. R for Data Science" by Hadley Wickham and Garrett Grolemund - 1st Edition, 2017

3. S. C. Gupta and V. K. Kapoor, Fundamentals of Mathematical Statistics. New Delhi, Sultan Chand and sons, 11th ed. 2002. (reprint 2011)

Essential Reading / Recommended Reading

1. R Graphics Cookbook" by Winston Chang - 2nd Edition, 2018

2. R Graphics" by Paul Murrell - 2nd Edition, 2021

Evaluation Pattern

Department of Professional Studies follows a rigorous system of continuous evaluation, and theassessment events include quizzes, tests, assignments, mid-term and end-term exams,individual/group project work, presentations etc.

For this course, students are evaluated on the basis of continuous internal assessment

Continuous Internal assessments : 45 marks

Attendance : 05 marks

·

A student should have secured minimum 40% marks overall to pass in that paper.

MAS231 - FINANCIAL MATHEMATICS AND LIFE CONTINGENCIES-II (2024 Batch)

Total Teaching Hours for Semester:60
No of Lecture Hours/Week:4
Max Marks:100
Credits:4

Course Objectives/Course Description

 

The Master of Science in Actuarial Science program is designed to prepare students to pursue careers in quantitative finance. The aim of this course is to provide grounding in Financial Mathematics and their applications. Increasingly firms of all types, but especially financial institutions, investment banks, and commodities firms, rely upon highly sophisticated mathematical models to identify, measure, and manage risk.Topics covered also include the life table, life assurance contracts, life annuity contracts.

Course Outcome

CO1: Understand the principles of Actuarial modelling and cashflow models and apply them in real world problem

CO2: Apply the financial mathematics concepts like time value of money, calculation of present values and accumulated value of cashflows, annuities, project appraisals, NPV, loan schedule etc.

CO3: Understand the concepts of financial instruments, cashflows associated with different assets classes, present value and accumulated value of investments, project appraisal, net present value, capital repaid & interest paid on loans and preparing loan schedules etc. and would be in a position to pass the exams conducted by the institute of actuaries of UK and India.

CO4: Apply the life insurance concepts in introducing various life insurance products and their use.

CO5: Calculate gross premium and gross premium reserves for evaluating the life insurance products

Unit-1
Teaching Hours:15
Equation of Value and Loan schedules
 

The equation of value and the yield on a transaction and uncertain payment or receipt, Loan Schedules - Calculating the capital outstanding, Calculating the interest and capital elements, The loan schedule, Instalments payable more frequently than annually and Consumer credit, APR and Flat rate of interest.Bonds, Equity and property- Fixed interest securities, Uncertain income securities, Real rates of interest, The effects of Inflation, Index-linked bonds.

Unit-2
Teaching Hours:15
Project Appraisal and Term Structures of interest rates
 

Estimating cashflows, Accumulates value, Net Present value, Internal rate of return, Fixed interest rates, Different interest rates for lending and borrowing, Payback periods,  and Other considerations, Discrete time rates- Discrete time forward rates, discrete time spot rates, Continuous time rates – continuous-time spot rates, continuous time forward rates, Instantaneous forward rates, Theories of term structure of interest rates – Expectation theory, Liquidity preference, Market segmentation, Par yield, Duration, convexity and Immunisation, Redington’s conditions

Unit-3
Teaching Hours:15
Evaluation of Life Assurance contracts and Life Annuity Contracts,Variable Benefits and conventional with-profit Policies
 

 

Evaluating assurance benefits, Evaluating annuity benefits, Premium conversion formulae, continuous annuities and evaluation of assurance and annuities, Expected present values of annuities payable m times each year and Expected present values under a constant force of mortality, Variable payments, Payments varying at a constant compound rate, Payments varying by a constant monetary amount and Conventional with profit contracts.

Unit-4
Teaching Hours:15
Gross premiums and Gross Premium Reserves
 

The gross premium, Gross future loss random variable, Principle of equivalence and Calculating gross premiums using simple criteria other than the equivalence principle, Why hold reserves, Prospective reserves, retrospective reserves, Equality of prospective and retrospective reserves, Recursive relationship between reserves for annual premium contracts and Net premium reserves for conventional without profit contracts.

Text Books And Reference Books:

 1. Alistair Neill, Life Contingencies. Butterworth-heinemann, 1977.

2. Stephen G. Kellison, The theory of interest. Irwin Mc Graw Hill, 2008.

Essential Reading / Recommended Reading

 

1. Newton L. Bowers, Actuarial Mathematics. The society of Actuaries, 1986.

2. David C. M. Dickson, Mary R. Hardy, Howard R. Waters, Actuarial Mathematics for life contingent risk. Cambridge University Press, 2009.

Evaluation Pattern

Department of Professional Studies follows a rigorous system of continuous evaluation, and the assessment events include quizzes, tests, assignments, mid-term and end-term exams, individual/group project work, presentations etc.  

Students are evaluated for each course on the basis of written examination and continuous internal assessment. Each paper carries maximum of 100 marks and is evaluated as follows:

End Semester Examination (ESE)                                      :           50%

Mid Semester Examination (CIA-2)                                   :           25%

Continuous Internal Assessments (CIA- 1 & 3)                 :           20%

Attendance                                                                             :           05%

Total                                                   :          100%                                   

·       Written Examinations consists of:

§  Mid Semester Exam – 50 marks (2 hours’ duration)

§  End Semester Exam – 100 marks (3 hours’ duration)

·       A student should have secured minimum 40% marks in the ESE to pass in that paper.

 

 

·       In aggregate for each paper, for internal and end semester put together, at least 40 marks out of 100 must be secured to pass in that paper. 

MAS232 - ACTUARIAL STATISTICS - II (2024 Batch)

Total Teaching Hours for Semester:60
No of Lecture Hours/Week:4
Max Marks:100
Credits:4

Course Objectives/Course Description

 

The aim of this course is to provide deeper understanding of higher level statistical inference, and introduce the concepts of Bayesian statistics, Generalized Linear Models and Credibility Theory.

Course Outcome

CO1: Understand the concept of hypothesis testing - Setting up hypotheses; Ideal tests for different scenarios.

CO2: Understand the concepts of correlation and regression, and the different models underlying them.

CO3: Understand the fundamentals of GLM and its applications; Tests related to fitting and relevancy of the model.

CO4: Understand the fundamentals of Credibility Theory - Calculation of credibility factors and different models under credibility theory.

CO5: Apply the statistical concept to identify the probability of risk.

Unit-1
Teaching Hours:20
Hypothesis testing and Data Analysis
 

Concept of hypothesis, simple and composite hypothesis; null and alternative hypothesis; type1 and type II errors, test statistic, likelihood ratio, critical region, level of significance, probability value, and power of a test. Basic tests for one and two-sample situations involving normal, binomial, and Poisson distributions and paired data. Chi-square test for goodness of fit, single variance, and independence of two classification criteria. Define and calculate Pearson’s, Spearman’s and Kendall’s measures of correlation for bivariate data, explain their interpretation and perform statistical inference as appropriate

Unit-2
Teaching Hours:15
Linear and Multiple Regression
 

Regression analysis: response and exploratory variables, simple regression model (with single explanatory variable), least square estimates of simple regression model and their significance; multiple linear regression model (with several explanatory variables).

Unit-3
Teaching Hours:15
Generalized Linear Models and Bayesian Statistics
 

 

Generalised linear models: Exponential families; Link functions and linear predictors; Deviance of model fitting, the saturated model, scaled deviance, Likelihood ratio test, Residuals analysis and assessment of model fit - Goodness-of-fit tests. Bayesian Statistics: Bayes’ Theorem, Prior and posterior distributions, Loss Functions

Unit-4
Teaching Hours:10
Credibility Theory
 

Credibility Theory: Credibility- The credibility premium formula; credibility factor, Bayesian credibility, The Poisson/gamma model, the normal/normal model Empirical Bayes credibility theory: Model 1, Model 2.