Program Overview

ACST8031 – Actuarial Control Cycle 1

Unit Description

This unit, in conjunction with ACST8032, develops and applies the actuarial principles and practices underlying the design, assessment, management, and control of financial systems in the areas of life insurance, general insurance, superannuation, and other less traditional areas of actuarial practice. The two units together consider the process of actuarial and financial management, including product design, pricing, marketing, monitoring of experience, reserve setting, financing, solvency, determination and distribution of surplus, and its role in enterprise risk management.

Learning Outcomes

On successful completion of this unit, students will be able to:

• Discuss and apply an Actuarial Control Cycle in a variety of practical commercial situations.
• Relate the main features of the actuarial control cycle within the general environment to medium and long-term commercial decisions.
• Analyse the main features and risks of financial products and contracts from the point of view of consumers and providers.
• Demonstrate an understanding of enterprise risk management and apply a risk assessment framework to identify and assess the risks in a range of situations.
• Discuss and apply the process of product design.
• Explain and justify decision-making to different stakeholders using the Actuarial Control Cycle framework.

General Assessment Information

Late Assessment Submission Penalty: A 5% penalty (of the total possible mark) will be applied each day a written assessment is not submitted, up until the 7th day (including weekends). After the 7th day, a grade of '0' will be awarded even if the assessment is submitted.

Assessment Tasks

• Formal and observed learning: Exam (70%)
• Skills development: Actuarial Control Cycle (15%)
• Skills development: Presenting (15%)

Delivery and Resources

• Classes: ACST8031 is offered via classes on the Macquarie University City campus and via distance education throughout the world.
• Style of classes: A mixture of short "micropresentations", small group work, discussions involving the whole class, and individual activities.
• Online lecture recordings: Standard recordings of campus lectures using the University's lecture recording facility (ECHO360) will be available.
• Timetable: The timetable for classes can be accessed through eStudent Class Finder.
• Teaching staff: Simon Guthrie is the unit convenor, and Bruce Edwards will be conducting other classes and supervision of presentations.
• Assumed knowledge: We assume from the start of the Actuarial Control Cycle that students have acquired the knowledge and skills in subjects CT1 to CT8 of Part I of the Actuaries Institute education program.
• Required and recommended texts and materials: The textbook for this unit is "Understanding Actuarial Management: The Actuarial Control Cycle" by Bellis, C., Lyon, R., Klugman, S., and Shepherd, J.

Unit Schedule

The unit schedule outlines the topics covered in each week of the semester, including:

• Week 1: Meeting Consumers' Needs
• Week 2: Product Development
• Week 3: Context of Actuarial Work
• Week 4: Financial Services Overview
• Week 5: Modelling
• Week 6: ERM
• Week 7: Presentations
• Week 8: Applying Risk Management
• Week 9: Capital 1
• Week 10: Capital 2
• Week 11: Pricing 1
• Week 12: Pricing 2
• Week 13: Revision

Policies and Procedures

Macquarie University policies and procedures are accessible from Policy Central. Students should be aware of the following policies in particular with regard to Learning and Teaching:

• Academic Appeals Policy
• Academic Integrity Policy
• Academic Progression Policy
• Assessment Policy
• Fitness to Practice Procedure
• Assessment Procedure
• Complaints Resolution Procedure for Students and Members of the Public
• Special Consideration Policy

Academic Integrity

At Macquarie, we believe academic integrity – honesty, respect, trust, responsibility, fairness, and courage – is at the core of learning, teaching, and research. We recognise that meeting the expectations required to complete assessments can be challenging, and we offer a range of resources and services to help students reach their potential.

Student Support

Macquarie University provides a range of support services for students, including:

• Academic Success
• The Library
• IT Support
• Accessibility and disability support with study
• Mental health support
• Safety support to respond to bullying, harassment, sexual harassment, and sexual assault
• Social support including information about finances, tenancy, and legal issues
• Student Advocacy provides independent advice on MQ policies, procedures, and processes