| CODE | INS2400 | ||||||||
| TITLE | IRM Quantitative Analytical Principles | ||||||||
| UM LEVEL | 02 - Years 2, 3 in Modular Undergraduate Course | ||||||||
| MQF LEVEL | 5 | ||||||||
| ECTS CREDITS | 4 | ||||||||
| DEPARTMENT | Insurance and Risk Management | ||||||||
| DESCRIPTION | This study-unit provides a comprehensive treatment of three inter-related disciplines that are indispensable to academic and professional work in insurance and with insurance-related products, namely: a. Financial Mathematics; b. Statistics; c. Econometrics and Time Series analysis. It is not designed to provide an exhaustive coverage of these disciplines but will highlight the inter-relationship between them, particularly in the context of Quantitative Insurance Analysis. Thus Equilibrium Analysis, Comparative Statics, Optimization problems will be tackled by matrix algebra and differential and integral calculus among other tools. Furthermore, statistics and econometric techniques are provides and treated in order that a proper quantitative framework can both digest and analyze the several variables impacting the prices of traded insurance products. The study-unit will adopt a data- and problem-driven approach in order that the skills provided have a practical application in Insurance and Risk Management. Study-unit Aims: To provide a quantitative framework that digests the large number of plausible variables that can impact the value of securities and their risk within the Insurance sector and area. To provide a strong basis of knowledge for building regression and time series equations to study the impact of economic factors on insurance products. To provide quantitative skills that can be used to analyze large baskets of financial data. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: - Understand, estimate and interpret financial models; - Intuitively grasp underlying theoretical concepts; - Understand concepts within relevant financial contexts, thus enabling to form a clear understanding of what is required to execute projects in empirical finance and risk. 2. Skills: By the end of the study-unit the student will be able to: - Learn and use the basic mathematical methods that have become indispensable for a proper understanding of the current literature in Insurance and Risk Management; - Estimate and interpret financial models in general; - Give a genuine sense of the kind of work that is to be found day to day managing insurance portfolios, doing research in the area or related endeavors. Main Text/s and any supplementary readings: - R. DeFusco, D.McLeevy, J.Pinto & D.Runkle; "Quantitative Investment Analysis", 2nd Edition, (2007), John Wiley and Sons. - This textbook is recommended for purchase. - A.C. Chiang & K. Wainwright; "Mathematical Economics", 4th edition (2005), Mc.Graw-Hill International Edition. Also recommend for purchase. It may be substituted however by the following text: I. Jacques; "Mathematics for Economics and Business", 5th edition, (2006). FT Prentice-Hall. - Selected readings and chapters will also be referred to in: C. Brooks; "Introductory Econometrics for Finance", 2nd edition (2008), Cambridge University Press. |
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| STUDY-UNIT TYPE | Lecture and Tutorial | ||||||||
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| LECTURER/S | Philip M. Beattie |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2025/6. It may be subject to change in subsequent years. |
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