Course Structure

The MSc Actuarial Science is a full time postgraduate programme aimed primarily at students with undergraduate degrees from the disciplines of maths, statistics, finance or any other programme with a high mathematical content.

The programme will encompass modules across the areas of actuarial mathematics, statistics, economics and finance, to provide graduates with the knowledge and skills to pursue a career as an actuary. This programme will provide students who have not undertaken an undergraduate Actuarial Science degree with the opportunity to accrue exemptions from six of the earlier IFoA professional exams (CM1-2, CB1-2 and CS1-2) in addition to undertaking postgraduate study.

Course Structure	Students pursuing a career in Actuarial Science should enjoy working with numbers, be effective communicators and work well with people as they will have to analyse and interpret financial and other information to meet the needs of different users, including clients, executive directors and investors.
Semester 1	Actuarial Mathematics 1 Actuarial Statistics Corporate Finance Economics
Semester 2	Actuarial Mathematics 2 Statistics for Insurance Actuarial Modelling Computational Methods in Finance
Semester 3	Applied Research Project

Career Prospects

Employment after the Course
Actuaries are constantly in demand and their skills are continually included in highly skilled occupation listings and for skills in demand listings. The Bureau of Labour Statistics project that employment of actuaries is expected to increase by 20% between 2018 and 2028, which is deemed to be faster than other occupations.

Actuaries primarily work in insurance and financial services, which are heavily regulated and require a number of statutory disclosures. The majority of graduates from the Actuarial Science programme obtain employment in the Republic of Ireland and in particular Dublin. Dublin has seen an influx of financial services companies either entering the market for the first time or increasing their footprint in Ireland, as a result of the United Kingdom’s withdrawal from the European Union. Another primary driver for the demand for actuaries has been changes in legislation. A recent example is the implementation of Solvency II for the insurance industry, which caused a spike in the demand for actuaries and enabled actuaries to develop new transferable skills. Furthermore, the International Accounting Standards Board has published the new accounting standard for insurance contracts, IFRS 17. This standard is due to be formally implemented in 2023 and there is a healthy demand for actuaries to help insurance companies prepare for the standard.

Finally, with the growth in data science and Insurtech, new, more technology based opportunities are available for actuaries. Rather than automation being a threat for actuaries, these new tools will enable actuaries to help their clients make better decisions, which contribute to the positive outlook for actuaries in the long term.

Learning and Teaching

Queen’s Management School (QMS) is one of the largest Schools in the University with more than 1800 full-time undergraduate students and 300 plus postgraduate students. The School has been delivering high quality programmes for more than 40 years and was one of the first schools in the UK to introduce undergraduate management education. Since then, QMS has been developing and enhancing its teaching portfolio for both local and international students and boasts students from more than 20 different nationalities.

In recent years, the School has benefited from significant investment resulting in many new academic appointments and state-of-the-art facilities including computer teaching labs with specialised software and a Trading Room in Riddel Hall. In addition, the new McClay library houses an excellent selection of Management and related texts and there are extensive IT facilities throughout the campus.

At Queen’s, we aim to deliver a high quality learning environment that embeds intellectual curiosity, innovation and best practice in learning, teaching and student support to enable students to achieve their full academic potential. In line with this, one of QMS’ primary objectives is to deliver innovative learning and teaching programmes that provide students with the competences and skills to make a positive contribution to business, economic and civic life.

On the MSc Actuarial Science programme we aim to achieve these goals by providing a range of learning environments which enable our students to engage with subject experts both academic staff and industry guest speakers, develop skills and attributes and perspectives that will equip them for life and work in a global society and make use of innovative technologies and a world-class library that enhances their development as independent, lifelong learners. Examples of the opportunities provided for learning on this degree programme are:

Assessment

Actuarial Science modules are typically assessed by a combination of continuous assessment and a final written unseen time bound examination.

Facilities

Students have access to Bloomberg software, a market leader in financial news, data and analytics, which is used by many financial institutions. The Trading Room allows for an interactive and exciting learning environment which, brings textbook theory to life.
http://www.qub.ac.uk/schools/QueensManagementSchool/Discover/TradingRoom

Modules

• Year 1

  Core Modules

  Statistics for Insurance (15 credits)

  ×

  Statistics for Insurance

  Overview

  This module builds on the first semester Actuarial Statistics module, and develops sophisticated techniques with a focus on actuarial applications, with particular reference to the insurance industry. The module uses R Studio to apply the techniques taught in a practical manner.
  Topics will include but not be limited to:
  Actuarial Modelling
  • The Actuarial Control Cycle and its application to General Insurance
  
  Fundamentals of General Insurance
  • Introduction to the basic short-term contracts, and the operation of simple forms of proportional and excess of loss reinsurance
  
  Loss distributions
  • Deriving moments and moment generating functions (where defined) of loss distributions and aggregate claim distributions.
  • Deriving the distribution and moments of claim amounts paid by the insurer and reinsurer in the presence of excesses (deductibles) and reinsurance, and derive the moments of compound distributions after the operation of simple forms of proportional and excess of loss reinsurance.
  • Describing a copula as a multivariate distribution, and using tail dependence to select a copula for modelling particular types of risk/
  • Recognising extreme value distributions, and calculating measures of tail weight.
  Time series
  • Introduction to time series.
  • Autoregressive, moving average, autoregressive moving average and autoregressive integrated moving average time series.
  
  Indicative readings:
  • Introductory statistics with applications in general insurance. Hossack, I. B.; Pollard, J. H.; Zehnwirth, B. 2nd ed. Cambridge University Press, 1999. 282 pages. ISBN: 052165534X
  • Pricing in General Insurace. Parodi, P. CRC Press, Taylor & Francis Group, 2015. ISBN: 9781466581449
  • Acted: Course Notes and Core readings for Subject CS2,
  • An introduction to statistical modelling. Dobson, A. J. Chapman & Hall, 1983. 125 pages. ISBN: 0412248603
  • Loss models: from data to decisions. Klugman, S. A.; Panjer, H. H.; Willmot, G. E. et al. John Wiley, 1998. 644 pages. ISBN: 0471238848
  • Practical risk theory for actuaries. Daykin, C. D.; Pentikainen, T.; Pesonen, M. Chapman & Hall, 1994. 545 pages. ISBN: 0412428504

  Learning Outcomes

  The aims of this module are to build on the mathematical and statistical techniques learned in the Statistics module, and apply these to basic general insurance problems faced by actuaries. Specifically, on successful completion of this module a student will be able to:
  • Calculate probabilities and moments of loss distributions both with and without limits and risk-sharing arrangements
  • Develop risk models involving frequency and severity distributions
  • Recognise extreme value distributions
  • Critically evaluate and interpret statistical models using loss distributions
  • Understand the concepts underlying time series models
  • Critically evaluate the suitability of time series models for actuarial problems and real world financial data, and apply them
  • Interpret the output from time series models of actuarial problems and real world financial data
  • Use R to develop and interpret risk models of insurance products
  • Use R to critically evaluate and analyse financial time series data

  Skills

  Through successful completion of this module, students should:
  • Use loss distributions, compound distributions and risk models for problem solving in a general insurance setting
  • Appreciate, construct and analyse time series models of actuarial problems and real world financial data
  • Use R to analyse and evaluate financial time series data
  • Effectively communicate the results of their statistical modelling
  • Reflect on their own strengths and weakness in relation to statistical analysis
  • Extend their learning through independent reading
  • Work independently and in groups
  • Manage their time to progress through the module

  Coursework

  0%

  Examination

  70%

  Practical

  30%

  Credits

  15

  Module Code

  FIN7039

  Teaching Period

  Spring

  Duration

  15 weeks

  Pre-requisite

  No

  Core/Optional

  Core

  Actuarial Modelling (15 credits)

  ×

  Actuarial Modelling

  Overview

  This module introduces modelling techniques with a focus on actuarial applications, building on the Statistics module. Topics will include but not be limited to:
  Stochastic processes
  General principles of stochastic processes, and classification into different types
  Define in general terms a stochastic process and in particular a counting process
  Classify a stochastic process according to whether it operates in discrete or continuous time and state space, or is of mixed type
  
  Markov Chains
  Explain what is meant by the Markov property in the context of a stochastic process and in terms of filtrations.
  Define and apply a Markov chain to actuarial problems such as a no claims discount scheme.
  State the essential features of a Markov chain model.
  State the Chapman-Kolmogorov equations that represent a Markov chain.
  Calculate the stationary distribution for a Markov chain in simple cases.
  Describe a time-inhomogeneous Markov chain model and describe simple applications.
  Demonstrate how Markov chains can be used as a tool for modelling and how they can be simulated.
  
  Markov Jump Processes
  Define and apply a Markov process.
  State the essential features of a Markov process model.
  Define a Poisson process, derive the distribution of the number of events in a given time interval, derive the distribution of inter-event times, and apply these results.
  Derive the Kolmogorov equations for a Markov process with time independent and time/age dependent transition intensities.
  Solve the Kolmogorov equations in simple cases.
  Describe simple survival models, sickness models and marriage models in terms of Markov processes and describe other simple applications.
  State the Kolmogorov equations for a model where the transition intensities depend not only on age/time, but also on the duration of stay in one or more states.
  Describe sickness and marriage models in terms of duration dependent Markov processes and describe other simple applications.
  Demonstrate how Markov jump processes can be used as a tool for modelling and how they can be simulated.
  define and apply a Markov chain and a Markov process
  
  Survival models
  Explain the concept of survival models.
  Describe the model of lifetime or failure time from age x as a random variable.
  State the consistency condition between the random variable representing lifetimes from different ages.
  Define the distribution and density functions of the random future lifetime, the survival function, the force of mortality or hazard rate, and derive relationships between them.
  Define the actuarial symbols (_t^)p_x and (_t^)q_x and derive integral formulae for them.
  State the Gompertz and Makeham laws of mortality.
  Define the curtate future lifetime from age x and state its probability function.
  Define the expected value and variance of the complete and curtate future lifetimes and derive expressions for them.
  Describe the two-state model of a single decrement and compare its assumptions with those of the random lifetime model.
  
  Estimating lifetime distributions
  Describe estimation procedures for lifetime distributions.
  Describe various ways in which lifetime data might be censored.
  Describe the estimation of the empirical survival function in the absence of censoring, and what problems are introduced by censoring.
  Describe the Kaplan-Meier (or product limit) estimate of the survival function in the presence of censoring, explain how it arises as a maximum likelihood estimate, compute it from typical data and estimate its variance.
  Describe the Nelson-Aalen estimate of the cumulative hazard rate in the presence of censoring, explain how it arises as a maximum likelihood estimate, compute it from typical data and estimate its variance.
  Describe the Cox model for proportional hazards, derive the partial likelihood estimate in the absence of ties, and state its asymptotic distribution.
  
  Application using software
  Use software to implement practical models of the above content
  
  Indicative readings:
  Course Notes and Core readings for Institute and Faculty of Actuaries Subject CS2
  International Series of Actuarial Science: Actuarial Mathematics for Life Contingent Risks, David C.M. Dickson, Mary Hardy and Howard R Waters
  Stochastic Processes for Insurance and Finance, Tomasz Rolski, Hanspeter Schmidli, Volker Schmidt, Jozef Teugels
  Probability and random processes, Geoffrey Grimmett

  Learning Outcomes

  Upon successful completion of this module students should be able to:
  • Differentiate between different stochastic processes.
  • Define and apply a Markov chain and a Markov jump process.
  • Develop and articulate solutions to simple actuarial problems using Markov chains and Markov jump processes.
  • Critically evaluate the suitability of Markov chains and Markov jump processes for a variety of actuarial problems.
  • Explain the concept of survival models.
  • Critically evaluate the suitability of different survival models to a population.
  • Apply Kaplan-Meier, Nelson-Aalen and Cox regression models to given data sets.
  • Critically evaluate the censoring present in a data set.
  • Critically interpret the output of Kaplan-Meier, Nelson-Aalen and Cox regression models.
  • Carry out calculations on the above topics using software.

  Skills

  Through successful completion of this module students should:
  • Appreciate, construct and analyse Markov chains and Markov processes applied to actuarial problems such as no claims discount schemes.
  • Demonstrate understanding of theory and examples of survival models, and methods for estimating lifetime distributions.
  • Clearly communicate the results of the Markov and survival models used.
  • Use software to develop solutions to complex actuarial modelling problems.
  • Develop software techniques to keep up with changing industry trends.
  • Reflect on their own strengths and weaknesses in relation to the actuarial modelling techniques used in the module.
  • Extend their learning through independent reading.
  • Work independently and in groups.
  • Manage their time to progress through the module.

  Coursework

  0%

  Examination

  70%

  Practical

  30%

  Credits

  15

  Module Code

  FIN7040

  Teaching Period

  Spring

  Duration

  15 weeks

  Pre-requisite

  No

  Core/Optional

  Core

  Applied Research Project (60 credits)

  ×

  Applied Research Project

  Overview

  The ARP comprises three inter-related elements, the first two of which help to prepare the students for the third element, the research project.
  The ARP provides students with the opportunity to utilise the knowledge and skills acquired over the previous two semesters to plan, develop and produce a substantial piece of original, independent applied research.
  The ARP is comprised of 3 elements. The first two parts are worth 15 CAT points each and the main component, the “Data Science Research Report” is worth 30 CAT points.
  i. Financial Engineering
  ii. Actuarial Research Methods
  iii. Data Science Research Report
  The financial engineering element will cover some of the actuarial syllabus (CM2) and the actuarial research methods component will cover some of the CS1 actuarial syllabus. Both elements will prepare students for the main element, the data science research report.
  Actuarial Research Methods
  The aim of the actuarial research methods element is to provide a comprehensive introduction to econometric and statistical research techniques used in actuarial science, with a focus on data science techniques such as Linear Regression, Time Series, Logistic Regression, Neural Networks, Bayesian Statistics, cluster analysis and Decision Trees.
  
  The course is designed to give students both theoretical and practical experience of statistical and econometric data science techniques. Students will learn a computer statistical software package (R). Assessment: assignments and class based assessments.
  This module builds on the previous Actuarial Statistics module and provides a comprehensive introduction to statistical research techniques used in actuarial science Topics will include but not be limited to:
  Statistical inference
  • Hypothesis testing and goodness of fit.
  
  Regression theory
  • Simple linear progression.
  • Generalised linear models.
  
  Bayesian Statistics
  • Bayes theorem.
  • Prior and posterior distributions.
  • Loss functions.
  • Empirical Bayes Credibility Theory
  
  Monte Carlo Simulation
  
  Indicative readings:
  • Acted: Course Notes and Core readings for Subject CS1
  • Effective statistical learning methods for actuaries: I. [Generalised Linear Models] GLMs and extensions. - Denuit, M., Hainaut, D. and Trufin, J. - Springer, 2019. ISBN 978-3030258207
  • Generalized linear models. 2nd ed. McCullagh, P. and Nelder, J.A. Chapman & Hall/CRC Press, 1989. ISBN 0412317605 [referenced in IFoA CS1 Core Reading]
  • An introduction to statistical learning: with applications in R. Gareth James, Daniela Witten, Trevor Hastie, Robert Tibshirani. Springer, 2014. ISBN: 9781461471370
  
  Financial Engineering
  The aim of the Financial Engineering element is to provide a grounding in the principles of modelling as applied to actuarial work – focusing particularly on stochastic asset liability models and the valuation of financial derivatives. Financial Engineering will cover the following topics:
  Topic 1
  Theories of financial market behaviour
  • Overview of rational expectations and rational choice theories.
  • Introduction to behavioural science and the application in financial markets.
  
  Topic 2
  Measures of investment risk
  • Introduction to measures of investment risk, including variance, Value at Risk (VaR) and tail VaR.
  • Application of measures to compare investment opportunities and relation to utility.
  
  Topic 3
  Stochastic interest rate models
  Topic 4
  Asset valuations
  • Introduction to mean-variance portfolio theory.
  • Introduction to and application of asset pricing models.
  • Overview of single and multifactor models.
  
  Topic 5
  Liability valuations.
  • Introduction to ruin theory and corresponding distributions.
  • Probability of ruin in discrete and continuous time.
  • Introduction to run off triangles.
  • Nominal and real chain ladders.
  
  Indicative reading:
  • John C Hull (2018), Options Futures and Other Derivatives. 9th edition, Prentice-hall International, Inc
  Bodie, Z., Kane, A., and Marcus, A., 2014, Investments, 10th edition, Global Edition, McGraw-Hill Irwin
  
  Data Science Research Report
  The aim of the Data Science Report is to produce an empirical piece of work of 6,000 words, which is structured like a journal article and incorporates an element of data science analysis for an actuarial science problem.

  Learning Outcomes

  Upon successful completion of the module, students should be able to:
  • Evaluate and apply theory and practice in advanced statistics related to actuarial science
  • Effectively apply statistical procedures
  • Critically evaluate the appropriateness of a range of statistical tests in solving a variety of actuarial problems
  • Independently interpret the output of statistical tests and explain their practical and theoretical implications
  • Gain experience in the use of modelling software and be able to demonstrate their software skills.
  • Understand the structure and pricing of swap contracts
  • Demonstrate a knowledge and understanding of stochastic models of the behaviour of security prices
  • Understand the role and pricing of option contracts
  • Understand the role, pricing and hedging functions of futures contracts
  • Understand risk management and risk assessment in the context of derivative instruments
  • Conduct a review of the current and relevant literature of the subject area chosen for the research study
  • Derive hypotheses or formulate research questions
  • Use data extracted from datasets to test hypotheses or answer research questions
  • Draw conclusions and identify the limitations of the study and scope for further research.

  Skills

  Through successful completion of the module, students should be able to:
  • Use advanced statistical techniques to analyse actuarial problems
  • Use Monte Carlo simulation to build appropriate financial models
  • Appreciate, construct and analyse statistical models applied to real world actuarial problems
  • Communicate complex statistical analysis in an effective and ethical way
  • Communicate using financial derivative terminology
  • Communicate aspects of financial engineering to non-specialist audiences
  • Demonstrate understanding of various financial derivative products
  • Reflect on their own financial and mathematical strengths and weaknesses as they progress through the module
  • Work independently and in groups
  • Manage their time effectively to progress through the module
  • Extend their learning through independent reading
  • Reflect on their own statistical strengths and weaknesses
  As well as developing the following skills:
  • Search and critically review relevant literature
  • Creative thinking and problem solving
  • Technical model development
  • Report writing
  • Time management
  • Ability to critically read and evaluate finance and risk-related academic literature
  • Cognitive Skills
  • Problem solving
  • Logical reasoning
  • Independent enquiry
  • Critical evaluation and interpretation
  • Self-assessment and reflection
  • Intellectual humility
  • Intellectual discipline
  • The ability to synthesis information/data from a variety of sources
  • Preparation and communication of ideas in written form

  Coursework

  50%

  Examination

  50%

  Practical

  0%

  Credits

  60

  Module Code

  FIN7041

  Teaching Period

  Summer

  Duration

  15 weeks

  Pre-requisite

  No

  Core/Optional

  Core

  Actuarial Mathematics 2 (15 credits)

  ×

  Actuarial Mathematics 2

  Overview

  This module builds on the functions and techniques introduced in Actuarial Mathematics 1, with the introduction of cash flows dependent on death, survival or other uncertainties.
  Topic 1
  Life Table Functions
  • Introduction to survival probabilities
  • Determine expressions for survival probabilities and life table functions
  • Life table functions at non-integer ages
  • Understand Ultimate and Select mortality.
  
  Topic 2
  Life Assurance and Annuity Functions
  • Define simple assurance and annuity functions
  • Determine expressions for the mean and variance of the present value for these functions, with premiums and annuities paid annually, more frequently or continuously and benefits paid at varying times and frequencies
  • Derive relationships between assurance and annuity functions.
  
  Topic 3
  Variable Benefits and Mortality Profit
  • Calculate expected present value of an annuity, premium or benefit on death which increases by:
  o A constant compound rate
  o A constant monetary amount
  • Discuss with profits contracts and calculate premiums and reserves for variable benefits.
  • Evaluate elements of mortality profit for a single contract and a portfolio of contracts.
  
  Topic 4
  Gross Premiums and Reserves
  • Introduction to gross premiums and reserves
  • Calculate gross premiums using the principle of equivalence, with premiums and annuities paid annually, more frequently or continuously and benefits paid at varying times and frequencies
  • Define and evaluate prospective and retrospective gross premium reserves and state the conditions they are equal, allowing for expenses
  • Introduction to net premium reserves.
  
  Topic 5
  Joint Life Functions
  • Introduction to joint life and survival functions
  • Calculate the expected present value of simple assurance and annuity functions allowing for death/survival of one or both lives
  • Extend principles already introduced to functions contingent on order of death.
  
  Topic 6
  Modelling multiple decrements
  • Introduction to multiple states
  • Determine how to value cash flows using the multiple-state Markov Model
  • Evaluate expected cash flows dependent on more than one decrement for various benefit types using multiple decrement tables.
  
  Topic 7
  Discounting emerging costs, for use in pricing, reserving and assessing profitability
  • Introduction to unit-linked contracts
  • Evaluate expected cash flows for various contact types
  • Profit test simple annual premium contracts and appreciate how the profit test may be used to price a product
  • Demonstrate how the profit test may be used to determine reserves.
  
  Topic 8
  Mortality and selection
  • Factors that contribute to variations in mortality and morbidity
  • Types of selection and selection in life insurance contracts and pension schemes.
  
  Indicative readings:
  • www.ons.gov.uk/ons/dcp171778_345078.pdf
  • https://www.theactuary.com/features/2018/10/2018/10/09/interpreting-mortality-trends
  • https://www.actuaries.org.uk/learn-and-develop/continuous-mortality-investigation/cmi-working-papers/mortality-projections/cmi-working-paper-129/mortality-improvements-and-cmi2019-frequently-asked-questions-faqs
  • Actuarial mathematics. 2nd ed. Bowers, N. L.; Gerber, H. U.; Hickman, J. C. et al. Society of Actuaries, 1997
  • https://www.thepensionsregulator.gov.uk/en/trustees/managing-db-benefits/funding/valuing-your-scheme
  • https://www.thepensionsregulator.gov.uk/en/document-library/codes-of-practice/code-3-funding-defined-benefits-

  Learning Outcomes

  Upon successful completion of this module, students should be able to:
  • Evaluate and apply the theory and application of mathematics to actuarial problems:
  o Understand further actuarial functions allowing for decrements used and the mathematical techniques employed by an actuary
  o Demonstrate the relationship between simple annuity and assurance functions
  o Solve equations of value to determine premium levels or reserves.
  • Critically evaluate and price annuity products using profit test.
  • Evaluate and apply theories of mortality and selection to insurance products and pension schemes.
  • Interpret the output of an actuarial valuation model, and communicate the results.

  Skills

  Through successful completion of this module, students should:
  • Use mathematical and demographic techniques to analyse actuarial problems.
  • Appreciate, construct and analyse mathematical models of practical situations:
  o Uncertainty in cash flows via decrements
  o Life assurance and annuity functions and the impact of decrements on these functions
  o Gross premiums and reserves
  o Profit test various types of contacts.
  • Connect business problems with actuarial practice through pricing insurance products and valuing pension benefits.
  • Understand the wider implications of actuarial mortality modelling, e.g. through CMI resources.
  • Use MS Excel to evaluate and develop solutions for the actuarial valuation of a pension scheme or insurance product.
  • Communicate the method and results of an actuarial valuation.
  • Demonstrate use of MS Excel to an industry standard.
  • Extend their learning through independent reading.
  • Reflect on their own strengths and weaknesses in actuarial mathematics.
  • Work independently and in groups.
  • Manage their time to progress through the module.

  Coursework

  30%

  Examination

  70%

  Practical

  0%

  Credits

  15

  Module Code

  FIN7038

  Teaching Period

  Spring

  Duration

  15 weeks

  Pre-requisite

  No

  Core/Optional

  Core

  Economics (15 credits)

  ×

  Economics

  Overview

  This module provides an introduction to the fundamental principles and concepts of microeconomics and macroeconomics.
  Topic 1
  Economic models and recent historical applications
  • The relevance of economics to the world of business
  • The main strands of economic thinking:
  o Classical
  o Marxian socialism
  o Neo-classical
  o Keynesian
  o Neo-Keynesian and post-Keynesian
  o Monetarist
  o Austrian
  
  Topic 2
  Microeconomics – the behaviour of consumers, firms and markets
  • The workings of competitive markets
  • Consumer demand and behaviour
  • The importance of advertising for a firm
  • Discussion of the production function, costs of production, revenue and profit in order to understand a firm’s price and output decisions
  • Profit maximisation under perfect competition, monopoly and imperfect competition
  • Pricing strategies
  
  Topic 3
  Macroeconomics - relationships between governments, markets and firms, Government policies and International trade.
  • The reasons for government intervention in the market
  • The relationship between the government and the individual firm
  • Globalisation and multinational business
  • Importance of international trade
  • The macroeconomic environment of the business
  • The balance of payments and determination of exchange rates
  • The role of money and interest rates in the economy
  • The role, structure and stability of the financial system
  • What determines the level of business activity and how it affects unemployment and inflation
  • Impact of macroeconomic policies on business
  • Impact of supply side policies on business
  
  Indicative reading:
  • Economics. 10th ed. Sloman, J. Pearson, 2018; 2020. ISBN: 978-1292187853.
  • The CORE team (2018). Economy, Society and Public Policy. (E-book, free).
  • The CORE Team (2014). The Economy 1.0. E-book (free) or hard copy (OUP).

  Learning Outcomes

  At the conclusion of this module students will be able to:
  • Show a systematic knowledge and critical awareness of economic theory.
  • Apply a range of techniques to solve problems in the areas covered by the subject.
  • Appreciate recent developments and methodologies in economics.
  • Understand the relevance of economic theory to the business environment and the links between economic theory and its application in business.
  • Apply microeconomic and macroeconomic theory to business problems.

  Skills

  Through successful completion of this module, students should:
  • Evaluate and apply core economic principles and critically evaluate how these can be used in a business environment to help decision-making and influence behaviour.
  • Articulate the fundamental concepts of microeconomics that explain how economic agents make decisions and how these decisions interact.
  • Apply the principles underlying macroeconomics to explain how the economic system works, where it fails and critically interpret how decisions taken by economic agents affect the economic system.
  • Appreciate, construct and analyse economic models of practical situations.
  • Develop the ability to connect economic problems with actuarial practice.
  • Effectively communicate economic concepts to non-specialists.
  • Extend their learning through independent reading.
  • Reflect on the strengths and weaknesses of their economic knowledge and understanding.
  • Work independently and in groups.
  • Manage their time to progress through the module.

  Coursework

  30%

  Examination

  70%

  Practical

  0%

  Credits

  15

  Module Code

  FIN7037

  Teaching Period

  Autumn

  Duration

  15 weeks

  Pre-requisite

  No

  Core/Optional

  Core

  Computational Methods in Finance (15 credits)

  ×

  Computational Methods in Finance

  Overview

  The aims of this module are to:
  
  i. develop the students' computational skills
  ii. introduce a range of numerical techniques of importance to financial engineering
  iii. understand how to develop models using MATLAB
  
  Areas to be covered include:
  
  A primer on derivatives pricing
  o Bonds, forwards, options
  o Yield curves
  o Probability distributions
  o Expectation theory
  
  MATLAB
  o Arrays and matrices
  o Scripts, functions and classes
  o Programming constructs
  
  Numerical Methods
  o Root finding
  o Interpolation
  o Linear Algebra
  
  Lattice based models
  o Binomial trees
  
  Numerical solutions to stochastic differential equations
  o Finite difference methods
  
  The fundamentals of Monte Carlo simulation
  o Random number generation
  o Monte Carlo integration
  o Monte Carlo simulation
  o Variance Reduction
  
  Principal Component Analysis
  o Dimension reduction
  
  Numerical optimisation
  o Model calibration

  Learning Outcomes

  Upon successful completion of this module, students will:
  
  1. Understand the salient features of prominent derivatives contracts
  2. Price derivative products using several methodologies
  3. Translate financial problems into mathematical models with appropriate numerical solutions
  4. Have experience using MATLAB to implement financial models
  5. Critically evaluate the efficacy of several numerical methods for derivative pricing

  Skills

  This module provides opportunities for the student to acquire or enhance the following skills:-
  
  • Subject-specific skills
  o Ability to critically read and evaluate finance and risk-related academic literature
  o Appreciation, construction and analysis of financial and economic models for the purpose of financial decision making and risk management
  o Use of computer-based packages to implement models and process data.
  
  • Cognitive Skills
  o Problem solving
  o Abstraction
  o Logical reasoning
  o Critical evaluation and interpretation
  o Self-assessment and reflection
  
  • Transferable Skills
  o The ability to synthesis information/data from a variety of sources
  o Preparation and communication of ideas in both written and presentational forms
  o Ability to work both independently and in groups
  o Organisation and time management
  o Use computational technology

  Coursework

  40%

  Examination

  60%

  Practical

  0%

  Credits

  15

  Module Code

  FIN7029

  Teaching Period

  Spring

  Duration

  15 weeks

  Pre-requisite

  No

  Core/Optional

  Core

  Actuarial Mathematics 1 (15 credits)

  ×

  Actuarial Mathematics 1

  Overview

  This module provides an introduction to actuarial mathematics and the application of compound interest and simple annuity functions.
  Topic 1
  Actuarial Modelling and Data Analysis
  • Overview of the use of models
  • Distinction between deterministic and stochastic models
  • Aims of data analysis and overview of the data analysis process.
  
  Topic 2
  Cashflow Models
  • Introduction to cash flow models and
  • Using cash flow models to describe financial instruments.
  
  Topic 3
  Time Value of Money
  • Introduction to simple and compound interest
  • Accumulate and discount a single investment at a constant rate of interest using simple and compound interest.
  
  Topic 4
  Interest Rates
  • Nominal and effective interest and discount rates
  • The relationships between the rate of interest payable once per effective period, payable more frequently and the force of interest
  • The force of interest as a function of time
  • Real and money interest rates.
  
  Topic 5
  Valuing Cashflows and Annuities
  • Discounting and accumulating cash flows
  • Introduction to annuities
  • Derive formulae for level annuities payable in advance, arrears, paid annually, more frequently and continuously
  • Derive similar formulae for annuities when the first payment is deferred
  • Derive similar formulae for annuities that increase at a constant rate
  • Derive similar formulae for compound increasing annuities.
  
  Topic 6
  Equations of Value
  • Solving standard equations of value
  • Solving equations of value when payments are uncertain.
  
  Topic 7
  Loan Schedules
  • Identify capital and interest components of a loan repayment schedule
  • Identifying the capital outstanding at any one time
  • Flat rates and annual effective rates.
  
  Topic 8
  Project Appraisal
  • Net present value and accumulated profit of cash flows from an investment project at a given rate of interest
  • Internal rate of return implied by cash flows from an investment project
  • Payback period and discounted payback period and their respective terms implied by cash flows from an investment project.
  
  Topic 9
  Investments
  • Characteristics of assets classes
  • Calculate the present value of payments from various assets and determine their respective yields.
  
  Topic 10
  Term structure of Interest Rates
  • Evaluate discrete and continuous spot and forward rates
  • Theories of the term structure of interest rates
  • Evaluate duration, convexity and the conditions for Redington’s immunisation.
  
  Indicative readings:
  • Actuarial mathematics. 2nd ed. Bowers, N. L.; Gerber, H. U.; Hickman, J. C. et al. Society of Actuaries, 1997
  • https://www.thepensionsregulator.gov.uk/en/trustees/managing-db-benefits/funding/valuing-your-scheme
  • https://www.thepensionsregulator.gov.uk/en/document-library/codes-of-practice/code-3-funding-defined-benefits-
  • https://www.thepensionsregulator.gov.uk/en/document-library/regulatory-guidance/integrated-risk-management

  Learning Outcomes

  Upon successful completion of this module students will be able to:
  • Understand simple actuarial functions used and the mathematical techniques employed by an actuary and apply to actuarial problems
  • Interpret interest rates and convert annual interest rates into continuous rates and rates of other compound frequencies
  • Evaluate the present value of cash flows and/or the yield for various financial instruments.
  • Critically evaluate whether a project should proceed using the internal rate of return, payback period and discounted payback period
  • Understand and interpret the characteristics of different asset classes
  • Develop models using the above techniques in MS Excel, applied to actuarial problems
  • Critically evaluate and interpret output of models in MS Excel

  Skills

  Through successful completion of this module students should:
  • Communicate using actuarial terminology
  • Communicate complex mathematical techniques to non-specialist audiences
  • Demonstrate understanding of compound interest and how to apply it to annuity functions to solve actuarial problems
  • Analyse cash flows and develop solutions to technical problems using actuarial methods
  • Appreciate, construct and analyse mathematical models of practical actuarial problems
  • Use software to develop and critically evaluate more complex models, using MS Excel in line with industry standards
  • Connect business problems with actuarial practice through the study of asset classes and project appraisal
  • Extend their learning through independent reading
  • Reflect on their own mathematical strengths and weaknesses as they progress through the module
  • Work independently and in groups
  • Manage their time to progress through the module

  Coursework

  0%

  Examination

  70%

  Practical

  30%

  Credits

  15

  Module Code

  FIN7035

  Teaching Period

  Autumn

  Duration

  15 weeks

  Pre-requisite

  No

  Core/Optional

  Core

  Actuarial Statistics (15 credits)

  ×

  Actuarial Statistics

  Overview

  Statistics is at the core of actuarial science. This module provides the necessary foundation in statistics and will be built on in the later statistics modules.
  Topics will include but not be limited to:
  Random variables and distributions
  • Univariate distributions, including the calculation of probabilities, quantiles and moments
  • Independence, joint and conditional distributions, linear combinations of random variables
  • Expectations and conditional expectations
  • Generating functions
  • Central limit theorem
  
  Introduction to data analysis
  • Exploratory data analysis, including visualisation and summary statistics
  • Correlation and statistical inference
  • Random sampling and sampling distributions
  
  Statistical inference
  • Method of moments.
  • Maximum likelihood estimation.
  • Bias of estimators.
  • Confidence intervals.
  
  Indicative readings:
  • Acted: Course Notes and Core readings for Subject CS1
  • Effective statistical learning methods for actuaries: I. [Generalised Linear Models] GLMs and extensions. - Denuit, M., Hainaut, D. and Trufin, J. - Springer, 2019. ISBN 978-3030258207
  • Generalized linear models. 2nd ed. McCullagh, P. and Nelder, J.A. Chapman & Hall/CRC Press, 1989. ISBN 0412317605 [referenced in IFoA CS1 Core Reading]
  • An introduction to statistical learning: with applications in R. Gareth James, Daniela Witten, Trevor Hastie, Robert Tibshirani. Springer, 2014. ISBN: 9781461471370

  Learning Outcomes

  Upon successful completion of the module, students should be able to:
  • Evaluate and apply theory and practice in statistics
  • Effectively apply statistical procedures
  • Critically evaluate the appropriateness of a range of statistical tests in solving a variety of actuarial problems
  • Independently interpret the output of statistical tests and explain their practical and theoretical implications

  Skills

  Through successful completion of the module, students should be able to:
  • Use statistical techniques to analyse actuarial problems
  • Appreciate, construct and analyse statistical models applied to real world actuarial problems
  • Communicate complex statistical analysis in an effective and ethical way
  • Work independently and in groups
  • Manage their time effectively to progress through the module
  • Extend their learning through independent reading
  • Reflect on their own statistical strengths and weaknesses

  Coursework

  0%

  Examination

  80%

  Practical

  20%

  Credits

  15

  Module Code

  FIN7036

  Teaching Period

  Autumn

  Duration

  15 weeks

  Pre-requisite

  No

  Core/Optional

  Core

  Corporate Finance (15 credits)

  ×

  Corporate Finance

  Overview

  Course Description:
  The purpose of this course is to analyse how corporations make major financial decisions. The theory of corporate behaviour is discussed and the relevance of each theoretical model is examined by an empirical analysis of actual corporate decision making.
  
  Course Aim:
  The aims of this module are to:
  (i) familiarize students with the issues confronting corporations when making investment and financing decisions;
  (ii) develop the ability of students to obtain corporate information from the Bloomberg database.
  
  
  
  Course Coverage:
  • Corporate Governance
  • Investment Appraisal
  • Dividend Policy
  • Capital Structure
  • Initial Public Offerings
  • Mergers and Acquisitions

  Learning Outcomes

  Upon successful completion of this module, students will be able to:
  • describe and synthesize academic theories which explain the approaches of corporations to investment and financing decisions;
  • analyse how corporations can increase shareholder value;
  • evaluate empirical evidence regarding whether corporate decision making is consistent with academic theories;
  • apply theoretical principles to hypothetical situations;
  • use the Bloomberg database in a trading-room environment.

  Skills

  This course provides opportunities for the student to acquire or enhance the following skills:
  
  Subject-specific Skills
  • The ability to construct arguments and exercise problem solving skills in the context of theories of finance and risk management
  • The ability to use computer-based mathematical / statistical / econometric packages to analyse and evaluate relevant data
  • The ability to read and evaluate finance and risk-related academic literature
  • The ability to appreciate, construct and analyse mathematical, statistical, financial and economic models of practical risk situations
  
  Cognitive Skills
  • Problem solving
  • Logical reasoning
  • Independent enquiry
  • Critical evaluation and interpretation
  • Self assessment and reflection
  
  Transferable Skills
  • The ability to synthesise information/data from a variety of sources including from databases, books, journal articles and the internet
  • The preparation and communication of ideas in finance, information economics and risk management in both written and presentational forms
  • The ability to work both independently and in groups
  • Organisation and time management
  • Problem solving and critical analysis
  • Work-based skills; use of IT, including word-processing, email, internet and statistical/econometric/risk management packages
  • The ability to communicate quantitative and qualitative information together with analysis, argument and commentary in a form appropriate to different intended audiences.

  Coursework

  40%

  Examination

  60%

  Practical

  0%

  Credits

  15

  Module Code

  FIN9005

  Teaching Period

  Autumn

  Duration

  15 weeks

  Pre-requisite

  No

  Core/Optional

  Core

Entrance requirements

Graduate
Normally a 2.1 Honours degree or equivalent qualification acceptable to the University in a highly quantitative discipline such as Mathematics, Statistics, Finance or Economics. A strong performance in quantitative modules with mathematical content is required.

Applicants are advised to apply as early as possible and ideally no later than 11th August 2023 for courses which commence in late September. In the event that any programme receives a high number of applications, the University reserves the right to close the application portal. Notifications to this effect will appear on the Direct Application Portal against the programme application page.

Please note:  international applicants will be required to pay a deposit to secure a place on this course.

International Students

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English Language Requirements

Evidence of an IELTS* score of 6.5, with not less than 5.5 in any component, or an equivalent qualification acceptable to the University is required. *Taken within the last 2 years

International students wishing to apply to Queen's University Belfast (and for whom English is not their first language), must be able to demonstrate their proficiency in English in order to benefit fully from their course of study or research. Non-EEA nationals must also satisfy UK Visas and Immigration (UKVI) immigration requirements for English language for visa purposes.

For more information on English Language requirements for EEA and non-EEA nationals see: www.qub.ac.uk/EnglishLanguageReqs.

Career Prospects

Employment after the Course
Actuaries are constantly in demand and their skills are continually included in highly skilled occupation listings and for skills in demand listings. The Bureau of Labour Statistics project that employment of actuaries is expected to increase by 20% between 2018 and 2028, which is deemed to be faster than other occupations.

Actuaries primarily work in insurance and financial services, which are heavily regulated and require a number of statutory disclosures. The majority of graduates from the Actuarial Science programme obtain employment in the Republic of Ireland and in particular Dublin. Dublin has seen an influx of financial services companies either entering the market for the first time or increasing their footprint in Ireland, as a result of the United Kingdom’s withdrawal from the European Union. Another primary driver for the demand for actuaries has been changes in legislation. A recent example is the implementation of Solvency II for the insurance industry, which caused a spike in the demand for actuaries and enabled actuaries to develop new transferable skills. Furthermore, the International Accounting Standards Board has published the new accounting standard for insurance contracts, IFRS 17. This standard is due to be formally implemented in 2023 and there is a healthy demand for actuaries to help insurance companies prepare for the standard.

Finally, with the growth in data science and Insurtech, new, more technology based opportunities are available for actuaries. Rather than automation being a threat for actuaries, these new tools will enable actuaries to help their clients make better decisions, which contribute to the positive outlook for actuaries in the long term.

Additional Awards Gained(QSIS ELEMENT IS EMPTY)

Prizes and Awards(QSIS ELEMENT IS EMPTY)

Graduate Plus/Future Ready Award for extra-curricular skills

In addition to your degree programme, at Queen's you can have the opportunity to gain wider life, academic and employability skills. For example, placements, voluntary work, clubs, societies, sports and lots more. So not only do you graduate with a degree recognised from a world leading university, you'll have practical national and international experience plus a wider exposure to life overall. We call this Graduate Plus/Future Ready Award. It's what makes studying at Queen's University Belfast special.

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Fees and Funding

Tuition Fees

Northern Ireland (NI) 1	£8,360
Republic of Ireland (ROI) 2	£8,360
England, Scotland or Wales (GB) 1	£8,360
EU Other 3	£23,100
International	£23,100

¹ EU citizens in the EU Settlement Scheme, with settled status, will be charged the NI or GB tuition fee based on where they are ordinarily resident. Students who are ROI nationals resident in GB will be charged the GB fee.

² EU students who are ROI nationals resident in ROI are eligible for NI tuition fees.

³ EU Other students (excludes Republic of Ireland nationals living in GB, NI or ROI) are charged tuition fees in line with international fees.

All tuition fees quoted are for the academic year 2023-24, and relate to a single year of study unless stated otherwise. Tuition fees will be subject to an annual inflationary increase, unless explicitly stated otherwise.

More information on postgraduate tuition fees.

Additional course costs

All Students

Depending on the programme of study, there may be extra costs which are not covered by tuition fees, which students will need to consider when planning their studies.

Students can borrow books and access online learning resources from any Queen's library. If students wish to purchase recommended texts, rather than borrow them from the University Library, prices per text can range from £30 to £100. Students should also budget between £30 to £75 per year for photocopying, memory sticks and printing charges.

Students undertaking a period of work placement or study abroad, as either a compulsory or optional part of their programme, should be aware that they will have to fund additional travel and living costs.

If a programme includes a major project or dissertation, there may be costs associated with transport, accommodation and/or materials. The amount will depend on the project chosen. There may also be additional costs for printing and binding.

Students may wish to consider purchasing an electronic device; costs will vary depending on the specification of the model chosen.

There are also additional charges for graduation ceremonies, examination resits and library fines.

How to Apply

Apply using our online Postgraduate Applications Portal and follow the step-by-step instructions on how to apply.

Apply now

Terms and Conditions

The terms and conditions that apply when you accept an offer of a place at the University on a taught programme of study.
Queen's University Belfast Terms and Conditions.

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