Insurance Economics
- Credits: 7
- Ending: Examination
- Range: 24sP
- Semester: winter
- Year: 2
- Faculty of Economics and Finance
Teachers
Included in study programs
Teaching results
After studying this module, students should be able to:
Knowledge:
- understand the microeconomic models of demand and supply for insurance
- understand the behavior of subjects in the insurance market (traditional as well as modern approach)
Competences:
- development of a critical understanding of the role of insurance in terms of applied microeconomics
- express views based on empirical data
Skills:
- work with a scientific text and propose a research question in the field of insurance economics
- obtain relevant and reliable economic and statistical data on the development of the insurance market and verify the established hypotheses
Indicative content
The course offers an advanced knowledge of insurance economics as a stream of applied microeconomics. Attention is paid to the issue of risk and the scientific approach to measuring and perceiving risk. The supply and demand functions in the insurance market, together with the formation of equilibrium under different market conditions, represent a significant part of the subject. Part of the topics that will be discussed in the course is the issue of information asymmetry and the effects of asymmetries in the insurance market. Insurance is one of the most regulated sectors of the financial market. The issue of insurance market regulation and its impact on the functioning of the sector is an important part of the subject.
Support literature
ZWEIFEL, P. - EISEN, R. Insurance Economics. Springer Science & Business Media, 2012.
EECKHOUDT, L. - GOLLIER, C. - SCHLESINGER, H. Economic and Financial Decisions under Risk. Princeton University Press, 2011.
REES, R. - WAMBACH, A. The Microeconomics of Insurance. Now Publishers Inc, 2008.
SEOG, S. H. The Economics of Risk and Insurance. John Wiley & Sons, 2010.
DIONNE, G., et al. (ed.). Handbook of insurance. Springer, 2013.
DIONNE, G. - HARRINGTON, S.E. (eds.). Foundations of Insurance Economics: Readings in Economics and Finance. Huebner International Series on Risk, Insurance and Economic Security, 1992.
Syllabus
1. Insurance and Its Economic Role 2. Risk: Measurement and Perception 3. Risk: Utility Functions 4. Insurance Demand 5. Insurance Supply 6. Information Asymmetry: Moral Hazard and Adverse Selection 7. Financial Management and Regulation in Insurance Companies 8. Behavioral Insurance Theory 9. Current Trends and Challenges in the Insurance Industry
Requirements to complete the course
40% research study proposal, 60% colloquium
Date of approval: 10.02.2023
Date of the latest change: 06.04.2021