Actuarial Science students opting for an honours degree must complete an honours research project. This involves working with a supervisor in the Department of Mathematics and Statistics researching a problem related to actuarial science.
You'll have the freedom to choose from a several diverse research projects and focus on an area of particular interest to you.
Examples of past honours research projects include:
Improving the accuracy of simulations for measuring risk
One approach to more accurately measure risk is to simulate large negative outcomes more regularly than they would naturally occur. This research project studied the effect of different simulation methods for one particular risk measurement.
Credibility theory deals with the combination of information from a large but general sample with a small but more specific sample. For example, what if a given policyholder lives in a city that makes more claims than average, but this policyholder has made fewer claims than average? What is a fair premium for this policyholder to pay for their insurance?
This project focused on the use of longevity bonds to hedge the systemic risk to life insurance companies arising from changes to life expectancy. The idea is that improving health conditions can increase the cost of pensions, so the insurance companies spread the risk of this outcome across financial markets.