Reinsurance

  • Credits: 6
  • Ending: Examination
  • Range: 2P + 2C
  • Semester: winter
  • Year: 2
  • Faculty of Economics and Finance

Teachers

Included in study programs

Financial Markets and Investing

Teaching results

After successful completion of this course, students will have knowledge of:
- the importance, principles and traditional as well as alternative forms of reinsurance
- the use of appropriate reinsurance structures reflecting the specific nature of the different types of insurance
Practical skills and competencies consist in the ability to:
- design the reinsurance structure while respecting the capacity of reinsurance as well as capital markets
- optimize the reinsurance structure through the analysis of risk profiles and capital or capacity possibilities of the insurance company and the reinsurance company
- formulate and justify the findings to stakeholders

Indicative content

The aim of the course is to point out the importance of reinsurance for various subjects of the insurance and reinsurance market, society and the whole economy. Course prepare students to identify key reinsurance functions from both a microeconomic and a macroeconomic perspective. Course emphasize the role of reinsurers as risk bearers in risk management and their societal importance in the international financial market. The course also points out the practical applications of various reinsurance structures and their use in various areas of covered risks. In addition to traditional forms of risk transfer, the content of the course also focuses on the use of alternative forms of transfer of insurance risks to the capital market and the creation of reinsurance programs, as well as the position of financial market institutions in secondary risk transfer.

Support literature

CIPRA, T. Zajištění a přenos rizik v pojišťovnictví. Praha: Grada Publishing, 2004.
SCHWEPCKE, A.: Reinsurance: Principles and State of the Art. Bűhl: Verlag Versicherungswirtsch, 2004. ISBN 3-89952-159-5.
CARTER, R. I. Reinsurance, Springer, 2014. ISBN 978-9401574129.
ALBRECHER, H. - BEIRLANT, J. - TEUGELS, J. L. Reinsurance: Actuarial and Statistical Aspects. Hoboken: WILEY, 2017. 352 s. Wiley Series in Probability and Statistics. ISBN 978-0-470-77268-3.
KRÁTKA, Z. Zaistenie, Bratislava: Vydavateľstvo EKONÓM, 2007. ISBN 978-80-225-2411-7.

Syllabus

1. Introduction to reinsurance and the role of reinsurance in the financial market 2. History and characteristics of reinsurance, specifics of reinsurance 3. Significance and functions of reinsurance 4. Reinsurance and other risk transfer options 5. Classification and types of reinsurance 6. Proportional reinsurance and structures 7. Nonproportional reinsurance and structures 8. Facultative and treaty reinsurance 9. Reinsurance contracts 10. Creation and specifics of reinsurance programs 11. Alternative forms of risk transfer 12. Catastrophic risks coverage and modeling 13. Reinsurance policy and trends in reinsurance

Requirements to complete the course

20 % seminar assignments and case studies, 10 % mid-term exam, 10 % group assignments and teamwork, 60 % written exam

Date of approval: 10.02.2023

Date of the latest change: 06.04.2021