Dr David Dickson 300-304 Risk Theory Three hours a week of lectures or tutorials. On completion of this subject a candidate should be able to:

• apply utility theory to insurance problems;
• describe and apply principles of premium calculation;
• apply exact and approximate formulae to calculate the aggregate claims distribution for an individual risk model;
• calculate aggregate claims distributions and stop-loss premiums;
• find the probability of ultimate ruin in the classical risk model.

utility theory; premium principles; individual risk model; collective risk model; stop-loss reinsurance; ruin theory. One three hour end-of-semester examination.