Course Information

Course Title	Code	Semester	L+U Hour	Credits	ECTS
RUIN THEORY	UAKT402	8. Semester	2 + 2	3.0	6.0

Prerequisites

None

Language of Instruction	Turkish
Course Level	Bachelor's Degree
Course Type	Compulsory
Mode of delivery	Oral presentation
Course Coordinator
Instructors
Assistants
Goals	The aim of this course is to introduce the theoretical foundations of ruin theory and to teach related mathematical models.
Course Content	Introduction to Ruin Theory, Discrete-Time Risk Model, Probability of Ultimate Ruin, Lundberg Inequality, Classical Ruin Theory, Classical Risk Process, The Survival Probability, Barrier Problem, The severity of ruin, the maximum of ruin severity, Previous Reserve of Ruin, Ruin Time, Reinsurance, Gerber-Shiu Penalty Function
Learning Outcomes	1) Uses mathematical models to describe an insurer's vulnerability to insolvency/ruin. 2) Knows the key quantities such as the probability of ruin, distribution of surplus immediately prior to ruin and deficit at time of ruin. 3) Knows the theoretical foundation of ruin theory, known as the Cramér–Lundberg model.

Week	Topics	Teaching and Learning Methods and Techniques	Study Materials
1. Week	Introduction to Ruin Theory	Lecture; Question Answer; Problem Solving	Homework
2. Week	Discrete-Time Risk Model	Lecture; Question Answer; Problem Solving	Homework
3. Week	Probability of Ultimate Ruin	Lecture; Question Answer; Problem Solving	Homework
4. Week	Lundberg Inequality	Lecture; Question Answer; Problem Solving	Homework
5. Week	Classical Ruin Theory	Lecture; Question Answer; Problem Solving	Homework
6. Week	Classical Risk Process	Lecture; Question Answer; Problem Solving	Homework
7. Week	The Survival Probability	Lecture; Question Answer; Problem Solving	Homework
8. Week	Midterm exam
9. Week	Barrier Problem	Lecture; Question Answer; Problem Solving	Homework
10. Week	The severity of ruin, the maximum of ruin severity	Lecture; Question Answer; Problem Solving	Homework
11. Week	Previous Reserve of Ruin	Lecture; Question Answer; Problem Solving	Homework
12. Week	Ruin Time	Lecture; Question Answer; Problem Solving	Homework
13. Week	Reinsurance	Lecture; Question Answer; Problem Solving	Homework
14. Week	Gerber-Shiu Penalty Function	Lecture; Question Answer; Problem Solving	Homework
15. Week	Preparation for Final Exam	Lecture; Question Answer; Problem Solving	Homework
16. Week	Final exam

Recommended Sources

Fundamentals of Actuarial Mathematics, Promislow, S. D. ,2005.

Insurance Risk And Ruin, David C. M. Dickson Cambridge,2006.

Modern Actuarial Risk Theory, Kaas R., Goovaerts M., Dhaene J., Denuit M., Kluwer Academic Publishers, Boston, 2001.

Ruin probabilities. Asmussen, Søren; Albrecher, Hansjörg, 2010.

*DK = Course's Contrubution.

	0	1	2	3	4	5
Level of contribution	None	Very Low	Low	Fair	High	Very High

Event	Quantity	Duration (Hour)	Total Workload (Hour)
Course Duration (Total weeks*Hours per week)	14	4	56
Work Hour outside Classroom (Preparation, strengthening)	14	4	56
Homework	4	3	12
Midterm Exam	1	2	2
Time to prepare for Midterm Exam	1	24	24
Final Exam	1	2	2
Time to prepare for Final Exam	1	24	24
Total Workload
Total Workload / 30 (s)
ECTS Credit of the Course			30