Page 132 - Handbook Bachelor Degree of Science Academic Session 20202021

Faculty of Science Handbook, Academic Session 2020/2021

Term structure of interest rate: Vasicek model, Cox- Assessment:
Ingersoll-Ross model, Black-Derman-Toy binomial tree. Continuous Assessment: 40%
Final Examination: 60%
Models for credit risk: Structural, reduced form and intensity
based models, Merton model, valuing credit risky bonds. Medium of Instruction:
English
Assessment:
Continuous Assessment: 40% Soft Skills:
Final Examination: 60% CS2, CTPS3

Medium of Instruction: References:
English 1. Klugman, S. A., Panjer, H. H., & Willmot, G. E. (2012).
Loss models: from data to decisions (Vol. 715). John
Soft Skills: Wiley & Sons.
CS3, CTPS3 2. Cunningham, R. J. (2011). Models for quantifying risk.
Actex Publications.
References: 3. Dickson, D. (2010). Insurance risk and ruin. Cambridge
rd
1. McDonald, R. L. (2013). Derivatives markets (3 ed.). University Press.
Pearson Education. 4. Tse, Y. K. (2009). Nonlife actuarial models: Theory,
2. McDonald, R. L. (2009). Fundamentals of derivatives methods and evaluation. Cambridge University Press.
markets. Pearson Education.
3. Hull, J. C. (2012). Option, futures and other derivatives
th
(8 ed.). Pearson Education. SIQ3007 INDUSTRIAL TRAINING
4. Hull, J. C. (2014). Fundamentals of futures and options
th
markets (8 ed.). Pearson Education. Subject to the training offered by the relevant company.
5. Weishaus, A. (2012). ASM study manual for Exam
th
MFE/Exam 3F: financial economics (8 ed.). Assessment:
Continuous Assessment: 100%

SIQ3005 LIFE INSURANCE AND TAKAFUL Medium of Instruction:
English
Insurance products and unit-linked insurance; Group Life
insurance; Operation of a Life Insurance company: Soft Skills:
underwriting, claims, marketing and distribution methods; CS4, CTPS3, TS3, LL2, KK1, EM2, LS1
Profit testing ; Takaful insurance; Regulations: Insurance
Act, taxation and role of Bank Negara.
SIQ3008 FOUNDATION OF ISLAMIC FINANCE
Assessment:
Continuous Assessment: 40% Economic and social security; Pensions and their variants;
Final Examination: 60% Pension system in Malaysia; Employee Provident Fund
(EPF); Social Security Organization (SOCSO); Government
Medium of Instruction: pension scheme; Annuity scheme; Modeling pension plans
English using mathematical software; International pension
legislation and regulation; Malaysia regulatory framework
Soft Skills: related to retirement.
CS2, CTPS1, LL2
Assessment:
References: Continuous Assessment: 50%
1. Fisher, Omar Clark. (2013). A takaful primer: Basics of Final Examination: 50%
Islamic insurance. Thomson Reuters. Medium of Instruction:
2. Archer, S., Karim, R. A. A., & Nienhaus, V. (Eds.). English
(2011). Takaful Islamic insurance: Concepts and
regulatory issues (Vol. 764). John Wiley & Sons. Soft Skills:
3. Yusof, Mohd Fadzli (2006). Mengenali takaful. IBS Buku CS3, CTPS3
Sdn Bhd.
4. Gonulal, S. O. (Ed.). (2012). Takaful and mutual References:
insurance: Alternative approaches to managing risks. 1. Anderson, A. W. (2006). Pension mathematics for
World Bank Publications. actuaries. Actex Publications.
2. Asher, M. G. (1994). Social security in Malaysia and
Singapore: Practices, issues, and reform directions.
SIQ3006 RISK THEORY Malaysia: Institute of Strategic and International
Studies.
Loss distributions: Claim frequency and claim severity 3. Bakar, S. H. A., & Yunus, F. (2000). Social security
distributions, creating new distributions, parameter policies in Malaysia: The Employees’ Provident Fund
estimation methods, goodness-of-fit tests, risk sharing (EPF) and Social Security Organisation (SOCSO).
arrangements. Issues and Challenges of Social Policy East & West,
187-219.
Aggregate risk models: Individual risk models, collective risk 4. Malaysia.; International Law Book Services. Legal
models, reinsurance. Research Board. (2013). Undang-undang pencen di
Malaysia: Hingga 10hb Mei 2013. Petaling Jaya,
Run-off triangle: Chain ladder method, average cost per Selangor Darul Ehsan: International Law Book
claims method, Bornheutter-Ferguson method. Services.

Credibility theory: Bayesian credibility methods, credibility
premium formula, empirical Bayes credibility theory.

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