Year of Study:	3 - 4
Credit Units:	3
Duration:	45hours
Prerequisites:	AMS2320 Business Regression Analysis or with the Instructor’s permission and upon endorsement of the relevant Chairperson or Programme Director

This module aims to enable students to understand credibility theory within the context of
actuarial science. Topics selected include full and partial credibility, Bayesian premium, and
Empirical Bayesian method in the nonparametric and semi-parametric cases, Bühlmann and
Bühlmann-Straub models, and greatest accuracy credibility theory. Students are taught to
perform Bayesian analysis using both discrete and continuous models. Students are also
enabled to analyse data from an application in a business context.

Upon completion of this module, students should be able to:

1. apply sophisticated mathematical and statistical techniques for credibility
   theory in actuarial science;


2. apply the knowledge and techniques of credibility models to assess the
   insurance and financial risks from past claim experience; and


3. apply the acquired knowledge and techniques to calculate insurance
   premiums based on past claim history.