Teaching Methodologies
The classes are theoretical and practical in nature, using a mixed methodology. In a first phase, an expository method is used in order to
present the proposed syllabuses. In a second phase, an interactive methodology is used, where student participation is called for, both in
solving a wide range of exercises and in discussing and analysing real cases, both domestic and foreign.
This second phase is particularly realised through the assessment of reports and other documents on the insurance sector and pension
funds, and is consolidated when the contents of Chapter 4 are taught, in which students will have the opportunity to carry out work that will
enable them to understand which are the latest trends and theoretical contributions in the field of pension funds and plans.
Learning Results
This course aims to:
1) Discuss the consequences of demographic ageing, particularly in the field of the supply of financial pension products.
2) Reflect on how the insurance sector works, particularly the Life branch
3) Characterise the evolution and structure of the insurance sector in Portugal
4) Analyse the financial instruments and products that enable the management of longevity risk, both from the point of view of financial
institutions and companies
5) Learn about the particularities of private pension schemes, especially annuities and pension plans
6) Evaluate the impact of adopting pension plans in the context of companies
7) Describe the evolution of pension funds and plans in Portugal, as well as the respective management entities
Program
I. Basic concepts
1. Uncertain annuities
2. Mortality and commutation tables
3. Probability of life and probability of death
4. Life expectancy
5. Longevity risk
6. Present value and pure endowment
II. Life annuities
1. Whole life annuities
2. Temporary annuities
III – Life insurance
1. Concepts and framework
2. How the insurance sector works in Portugal and its evolution
3. Kinds of life insurance
3.1 Constant capital whole life insurance
3.2 Variable capital whole life insurance
3.3 Temporary insurance with constant capital
3.4. Temporary insurance with variable capital
3.5. A special case: n-year endowment insurance
4. Premiums
5. Methods of constituting provisions or mathematical reserves
IV. Pension funds
1. Pension funds and pension plans
2. Pension funds as a form of private pension scheme
3. Classification of pension funds and plans
4. The evolution of pension funds in Portugal
5. Actuarial cost-sharing methods associated with pension funds
Internship(s)
NAO
Bibliography
Autoridade de Supervisão de Seguros e Fundos de Pensões (sd). Relatórios vários.
Blake, D. (2020). Nudges and Networks: How to use behavioural economics to improve the life cycle savings-consumption balance.
Pensions Institute PI 2009.
Blake, D. et al. (2020). One size fits all: How many default funds does a pension scheme need? Pensions Institute PI 2004.
Quelhas, A. P. (2010). Seguros e Fundos de Pensões – uma perspectiva financeira e actuarial, Coimbra, Almedina.
Quelhas, A. P. (2015). Da diferenciação entre planos de pensões de benefício definido e planos de pensões de contribuição definida: mitos
e realidades. Boletim de Ciências Económicas, pp. 2343-2370.
Quelhas, A. P. & Pacheco, L. (2022). Quando a Demografia encontra as Finanças: do risco de longevidade aos instrumentos do Life
Market. Boletim de Ciências Económicas, LXV, pp. 39-73.
Quelhas, A. P. & Ruivo, M. (2005), Statistical Measures on Pension Reform, RESORE – Employee’s Resources and Social Rights in
Europe, , 12 pp.