Course in Actuarial Models for Parametric Insurance
Online 300-hour course in actuarial models for parametric insurance. 6 modules covering Law 50/1980 on Insurance Contracts (insurable interest), Directive 2009/138/EC (Solvency II) and R (extRemes). Assigned tutor and open enrolment.
Course in Actuarial Models for Parametric Insurance — studying from Malta
Insurance is one of Malta's established financial sectors, with a regulatory framework that has attracted captive insurers, reinsurers and specialist underwriters. This creates demand for professionals who can model risk, analyse claims data and support actuarial functions. Engineers with statistical skills are valued in pricing, reserving and risk management. Employers include licensed insurers, brokers, consultancies and the regulator itself, where quantitative and technical expertise is increasingly important.
Fees for Malta: €797 (Euro), with instalments and employer sponsorship available.
Relevant bodies in Malta
Typical roles
Questions from Malta
Which professional bodies in Malta relate to insurance, risk and actuarial work, and does SEIUM's qualification fit?
SEIUM Institute's qualifications are private qualifications, not official Maltese state degrees, and they are not accredited by any national body. In Malta, insurance and financial services are supervised by the Malta Financial Services Authority, and professional actuarial qualifications are set by international bodies that Maltese firms commonly follow. Whether SEIUM's training is recognised is for employers or the relevant body to decide.
What roles in Malta might this training support in insurance or risk management?
Malta has a significant insurance, reinsurance and financial services sector, and firms there employ people in risk analysis, data and modelling roles. Whether a private engineering-focused qualification counts for a given role depends on the employer's requirements and the qualifications they already expect. Reviewing current job descriptions in Malta and asking employers directly will show how your training would be viewed.
How much time does this need each week, and what language level is required?
Master's programmes total 1,900 hours, postgraduate diplomas 800 hours and specialist courses 300 hours, delivered fully online. Spread over the programme length, this suits people working full-time if they set a steady weekly schedule. Teaching is in English, so you should be comfortable reading and writing technical English. Fees can be paid in instalments, and employer sponsorship is possible.
Take the controls.
Run a real engineering trade-off from this field. Move the sliders, watch the model react in real time and beat the challenge.
What you will be able to do
Explain when parametric insurance is preferable to indemnity insurance.
Select reliable, independent indices and data sources.
Model the index using extreme value statistics.
Quantify and reduce basis risk.
Design the payout function and the contract terms.
Price the product and estimate its capital requirements.
Analyse the regulatory requirements for its commercialisation.
Who it's for
- Parametric insurance actuary who wants to specialise in Actuarial Models for Parametric Insurance.
- Index product designer who wants to specialise in Actuarial Models for Parametric Insurance.
- Climate risk analyst who wants to specialise in Actuarial Models for Parametric Insurance.
- Reinsurance structurer who wants to specialise in Actuarial Models for Parametric Insurance.
- Environmental data scientist who wants to specialise in Actuarial Models for Parametric Insurance.
- Inclusive insurance consultant who wants to specialise in Actuarial Models for Parametric Insurance.
- Engineering or science graduates seeking to enter reinsurance.
What you'll work with
- Law 50/1980 on Insurance Contracts (insurable interest)
- Directive 2009/138/EC (Solvency II)
- IFRS 17
- Delegated Regulation (EU) 2017/2358 (product governance)
- IAIS Application Paper on Index-Based Insurance (2018)
- Directive (EU) 2016/97 on insurance distribution (IDD)
6 modules · 300 h
1.1Index-based indemnity versus indemnity for loss1.2Use cases: climate, agriculture, catastrophe, delay and energy1.3Advantages: speed, management cost and objectivity1.4Limitations: basis risk and client acceptance1.5Insurable interest and the legal fit of the product1.6Difference from weather derivatives1.7Role in protecting uninsured groups1.8Markets where it has worked and where it has not1.9Players: insurer, data provider and calculation agent1.10Workshop: identifying a risk suitable for parametric cover
2.1Requirements of a good index: objective, verifiable and non-manipulable2.2Station and reanalysis meteorological data2.3Remote sensing: vegetation and soil moisture indices2.4Seismic, river flow and wave height data2.5Operational data: delays, supply outages and production2.6Spatial and temporal resolution of the index2.7Historical continuity and homogeneity of the series2.8Dependence on a single provider and a contingency plan2.9Data auditing and index governance2.10Practice: comparing two indices for the same risk
3.1Index time series: trend, cycle and seasonality3.2Extreme value distributions applied to the index3.3Correlation between the index and the insured's actual loss3.4Measurement and decomposition of basis risk3.5Spatial, temporal and product basis risk3.6Reducing basis risk: index baskets and adjustments3.7Climate change and non-stationarity of the series3.8Retrospective validation of the index against historical claims3.9Communicating basis risk to the client3.10Practice: calculating the basis risk of an agricultural product
4.1Trigger threshold, increment and maximum payout4.2Payout functions: step, linear and proportional4.3Coverage period and phenological windows4.4Multiple phases within a single contract4.5Insured unit and sum per hectare, facility or day4.6Implicit deductible and level of self-protection4.7Contract drafting and definition of the calculation agent4.8Resolving disputes over the index value4.9Transparency and documentation provided to the client4.10Practice: designing the payout function of a drought contract
5.1Pure premium based on the index distribution5.2Loading for model and data uncertainty5.3Portfolio simulation and aggregate loss5.4Accumulation: spatial correlation of payouts5.5Reinsurance of parametric portfolios5.6Catastrophe bonds and transfer to the capital markets5.7Required capital and stress testing5.8Expected profitability and sensitivity to assumptions5.9Public-private schemes and premium subsidy5.10Practice: pricing a regional parametric portfolio
6.1Regulatory fit of the product and approval of terms6.2Disclosure obligations and client protection6.3Automation of payment and index verification6.4Integration with the insurer's systems6.5Distribution: cooperatives, banks and platforms6.6Client education and expectation management6.7Monitoring: payouts made versus actual losses6.8Annual review of the index and thresholds6.9Scaling the product to new areas and crops6.10Final project: a complete parametric product, from index to contract
How you'll learn
100% online training on the SEIUM campus, with downloadable material, recorded classes and an assigned technical tutor. No fixed timetables: students progress at their own pace within the intake, which makes it easy to combine with work.
Each module combines theory, guided reading of the original standard and applied exercises. The working software is R (extRemes), Python (xarray), Copernicus Climate Data Store, advanced Excel, in free, academic or evaluation versions. Case studies cover real procedures for analysing basis risk using historical series, designing payout functions, burning cost pricing and simulation. Assessment is continuous by module plus the final integrative project.
Build it end to end
Your final project follows the real engineering workflow, step by step, reviewed by your tutor.
Explain when parametric insurance is preferable to indemnity insurance.
Select reliable, independent indices and data sources.
Model the index using extreme value statistics.
Quantify and reduce basis risk.
Design the payout function and the contract terms.
Where this takes you
Requirements
- No prior degree required.
- Internet connection and a computer capable of running the programme's software.
- Sufficient Spanish to follow technical regulatory texts.
Ready to start?
Send your application today. Our admissions team replies within 72 hours with your study plan and funding options.
Frequently asked questions
The programme comprises 300 hours in total, spread over 3 to 5 months. That is between 10 and 15 hours per week on average, compatible with a full-time job.
The course works with R (extRemes), Python (xarray), Copernicus Climate Data Store and advanced Excel. Free, academic or evaluation versions are used, and the tutor indicates the free alternative where one exists.
A SEIUM Institute diploma upon passing the continuous assessment and the integrative final project. It is in-house training, not an official qualification from the Ministry.
Yes. Modules passed in a course or postgraduate diploma in the same area are credited towards the advanced programme. Check the recognition policy when you enrol.
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