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Week 4 Study Plan

Week 4

Overview

This week, we will cover the following topics:

  • Module 4, which is concerned with the comparison between methods and choice of outstanding liabilities, based on those different methods.

See also detailed learning outcomes of 5.2 (“Liability valuations / Run-off triangles”) of the CM2 syllabus here.

Main references and lectures

Module 4

Read: Module 4

Annotated slides: UG/PG

Watch: refer to your lecture recording under “Lecture Capture” (UG/PG). This is where annotated slides will be made available, too.

Additional preparation and resources

Mandatory

  1. Chapter 4 of Taylor ().
  2. Spreadsheet here
  3. Spreadsheet here

Tutorials

Please let us know of any mistake or required update on Ed.

Tutorial materials

Some questions have been especially selected for the tutorials. Students should review The Tutorial book includes all questions for the whole semester already, but solutions will only be added sequentially at the end of each week, as we work our way through the set.

Note that solutions will be gradually added to that same document. Hence it is not recommended to print it, as it will regularly change (typos will also dynamically be corrected).

This week

All of Module 4 is in scope for the week 4 tutorials.

Next week (week 5)

Next week, we will do a Q&A for the mid-semester exam.

Preparation for assessment

Mid-semester (15%) and final (60%) exams

  • Finalise your summary of Module 3 as you consolidate your understanding with the exercises.
  • Start your summary of Module 4. This is the last one in scope for the mid-semester exam.

Make sure you start preparing for the mid-semester exam

Assignment (25%)

  • Nothing to do for now.
  • The assignment will likely be made available shortly after the mid-semester exam.
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References

Taylor, Greg. 2000. Loss Reserving: An Actuarial Perspective. Huebner International Series on Risk, Insurance and Economic Security. Kluwer Academic Publishers.