AS484: Actuarial Risk Theory and Credibility - Term 251

Sep 27, 2026

Uploaded by Aria

Course AS484 Actuarial Risk Theory and Credibility (Term 251) studies aggregated insurance claim modeling, including how risk changes with variations in expected claim frequency and severity. Topics cover frequency and severity distributions, individual and collective models, ruin theory, continuous-time compound Poisson surplus processes, reinsurance, dividend formulas, and credibility models. The course introduces empirical Bayes and relevant loss-experience distributions, applying risk theory to insurance and takaful and evaluating data credibility for ratemaking. It also emphasizes simulation approaches and assessment linkage to major examinations.

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KING FAHD UNIVERSITY OF PETROLEUM & MINERALS DEPARTMENT OF MATHEMATICS & STATISTICS DHAHRAN, SAUDI ARABIA AS484: Actuarial Risk Theory and Credibility – Term 251 (3-2-4) 11am UTR Course Description: Distribution of aggregate claims associated with insurance including analysis of the risk due to variations in expected claim numbers and amounts. Frequency and severity distributions, individual and collective models, ruin theory, continuous-time compound Poisson surplus processes, reinsurance, dividend formulas, credibility models, and simulation. An introduction to empirical Bayes and statistical distributions used to model loss experience. Application of risk theory to the operation of insurance and takaful system and assessment of the credibility of data for ratemaking. We shall often refer to the description of SOA Exam ASTAM at: [https://www.soa.org/4ae926/globalassets/assets/files/edu/2025/spring/syllabi/2025-spring-exam-astam-syllabus.pd](https://www.soa.org/4ae926/globalassets/assets/files/edu/2025/spring/syllabi/2025-spring-exam-astam-syllabus.pdf)[f](https://www.soa.org/4ae926/globalassets/assets/files/edu/2025/spring/syllabi/2025-spring-exam-astam-syllabus.pdf) [Textbook and package:](Textbook and package:) 1. Klugman, S. A., Panjer, H. H., and Willmot, G. E. (2012) . Loss Models: from Data to Decisions 4th edition. John Wiley and Sons 2. Texas BAII Plus Calculator or Texas BAII Professional 3. R studio statistical package (in Lab) Reference: 1. Computational Actuarial Science with R, Edited by Arthur Charpentier, Chapman and Hall, 2015. 2. SoA ASTAM sample on the SOA official website. 3. Tables for Exam ASTAM: [https://www.soa.org/globalassets/assets/files/edu/2023/astam-formula-sheet.pd](https://www.soa.org/globalassets/assets/files/edu/2023/astam-formula-sheet.pdf)[f](https://www.soa.org/globalassets/assets/files/edu/2023/astam-formula-sheet.pdf) 4. Exam ASTAM sample Questions (Only those related to AS 484 coverage of Exam ASTAM material): [https://www.soa.org/globalassets/assets/files/edu/2024/spring/questions/february-2024-astam-questions.pd](https://www.soa.org/globalassets/assets/files/edu/2024/spring/questions/february-2024-astam-questions.pdf)[f](https://www.soa.org/globalassets/assets/files/edu/2024/spring/questions/february-2024-astam-questions.pdf) [https://www.soa.org/globalassets/assets/files/edu/2024/spring/solutions/february-2024-astam-solutions.pd](https://www.soa.org/globalassets/assets/files/edu/2024/spring/solutions/february-2024-astam-solutions.pdf)[f](https://www.soa.org/globalassets/assets/files/edu/2024/spring/solutions/february-2024-astam-solutions.pdf) Instructor: Dr. Mohammad H. Omar Office: Bldg 5-rm 508 Phone: 2471 E-mail: [omarmh@kfupm.edu.sa](omarmh@kfupm.edu.sa) [Office Hours](Office Hours: UTR: 10.00am-10:45am)[:](Office Hours: UTR: 10.00am-10:45am)[ UTR: 10.00am-10:45am](Office Hours: UTR: 10.00am-10:45am) ([office](office)) [or by](or by) appointment on MS Teams chat Assessment Assessment for this course will be based on the following: | Activity | Weight | | --- | --- | | Classwork (Attendance, Quizzes, and Hwk) | 12% | | Labwork (Attendance, computer assignments, lab Quizzes, Lab Exam) | 20% | | Mid-Term (Chapters 3, 4, 5, & 6) Wednesday (Oct 8 week 7) 6.00 pm | 20% | | Term Paper Report Sunday (Nov 16 week 12) | 18% | | Final Exam (Comprehensive) (as posted by registrar) | 30% | IMPORTANT NOTE on GRADES: The A+ grade is granted to students who score 95% or above. There is no quota on the number of students who can get an A+ grade. The passing score for the course is 50% . DN grade is awarded to those with excessive total absences Attendance: Students are expected to attend all class meetings. ➢ If a student misses a class, he/she is still responsible for any announcement made in that class. ➢ Attendance on time is very important. Mostly, attendance will be checked within the first five minutes of the class. Entering the class af

FAQs

What topics are covered in AS484 Actuarial Risk Theory and Credibility?

The course covers aggregate claim modeling, frequency and severity distributions, individual and collective models, ruin theory, continuous-time compound Poisson surplus processes, reinsurance, dividend formulas, credibility models, empirical Bayes, and simulation applications for insurance and takaful ratemaking.

How is student performance assessed in this course?

Assessment includes classwork (12%), labwork (20%), a mid-term exam (20%), a term paper report (18%), and a comprehensive final exam (30%).

What are the main attendance and course conduct requirements?

Students are expected to attend all class meetings and attend on time; entering late counts as late and two lates equal one absence, and more than 10 minutes late results in absence. A DN grade is awarded after excessive unexcused/excused absence accumulation, only official KFUPM student affairs office excuses are accepted, and mobile use during class is not allowed without permission.

Sep 27, 2026

Uploaded by Aria

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