Risk and insurance

MAT15 Risk and insurance

Spring 2021

  • Topics

    Basic topics in insurance mathematics.

    The probabilistic theoretical basis for life insurance.

    Statistical analysis of life expectancy and mortality.

    Calculation of premium and premium reserve.

  • Learning outcome

    Students can, after completing the course:


    • Understand basic concepts in life insurance mathematics.


    • Master basic concepts in insurance mathematics (preferences and uncertainty, equivalence principle, premium reserves, stochastic dependence, costs, profits and bonuses).
    • Use mortality tables.
    • Use basic methods in life insurance mathematics (pension insurance, life insurance contracts on one and more lives).
    • Make insurance calculations. Interpret and present results achieve. 

    General competence

    • Learn new methods in insurance mathematics that have many applications in actuarial mathematics.

  • Teaching

    Plenary lectures  (with video recording)

  • Recommended prerequisites

    MAT10 Analysis and Linear Algebra

  • Required prerequisites

    MET1 Mathematics for Economists

    MET2 Statistics for Economists

  • Requirements for course approval

    Course approval is granted on the basis of one individual written submission. This submission must be accepted in order to get access for the exam.

  • Assessment

    5 hour written school exam


    UPDATED 13 October 2020:

    In the autumn of 2020, the school exam will be converted to a: 5-hour individual home exam at the same time as the originally planned exam.


    Grading Scale: A-F

  • Grading Scale

    Grading scale A - F

  • Literature

    Compulsory literature:

    Knut K Aase: Anvendt Sannsynlighetsteori: Forsikringsmatematikk (available online)

    Selected notes/overheads available in Canvas.


ECTS Credits
Teaching language

Autumn. Offered Autumn 2020 (first time).

Written school exam is offered both semesters (according to Regulations for Full-time Study Programmes at the Norwegian School of Economics (NHH), section 3-1).


UPDATED 13 October 2020: The assessment form was revised due to the ongoing corona pandemic. See assessment section for details.

Course responsible

Professor Roman Kozlov, Department of Business and Management Science.