Syllabus

Title
4520 Course V - Insurance Economics
Instructors
Univ.Prof. Alexander Mürmann, Ph.D.
Contact details
alexander.muermann@wu.ac.at
Type
PI
Weekly hours
2
Language of instruction
Englisch
Registration
02/22/24 to 02/29/24
Registration via LPIS
Notes to the course
Subject(s) Bachelor Programs
Specialization in Business Administration Course V - Finance: Markets, Institutions and Instruments
Course V - Finance: Markets, Institutions and Instruments
Course V - Finance: Markets, Institutions and Instruments
Dates
Day Date Time Room
Tuesday 04/09/24 12:30 PM - 02:30 PM TC.4.13
Tuesday 04/16/24 12:30 PM - 02:30 PM TC.4.13
Tuesday 04/23/24 12:30 PM - 02:30 PM TC.4.13
Tuesday 04/30/24 12:30 PM - 02:30 PM TC.4.13
Tuesday 05/07/24 01:15 PM - 03:00 PM TC.3.12
Tuesday 05/14/24 01:00 PM - 02:30 PM D5.0.001
Tuesday 05/21/24 12:30 PM - 02:30 PM TC.4.13
Tuesday 05/28/24 12:30 PM - 02:30 PM TC.4.13
Tuesday 06/04/24 12:30 PM - 02:30 PM TC.4.13
Tuesday 06/11/24 12:30 PM - 02:30 PM TC.4.13
Tuesday 06/18/24 12:30 PM - 02:30 PM TC.4.13
Tuesday 06/25/24 02:00 PM - 03:30 PM TC.4.03

On this page:

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Contents

In this course, we discuss and develop the (micro)economic foundation of insurance markets.

Topics include:

  • insurance supply
    • risk sharing and the role of correlation
    • insurance companies as financial intermediaries
    • default risk
  • insurance demand
    • risk aversion
    • insurance contracting
  • informational frictions in insurance markets
    • adverse selection
    • moral hazard
    • role of regulation
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Learning outcomes

After completing the course, students will be able to

  • understand the value created by risk sharing, insurance markets, and insurance companies.
  • understand supply-side and demand-side factors that are relevant for insurability of risks and for the design of insurance contracts.
  • understand informational frictions in insurance markets and its implications for insurability of risks and for the design of insurance contracts.
  • understand the role of governmental intervention in insurance markets.
  • discuss potential solutions to managing emerging risks due to, for example, climate change or pandemics.
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Attendance requirements

Students have to attend at least 80% of lectures.

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Teaching/learning method(s)

This class is mainly taught as lectures combined with examples and an in-class market game that help students to consolidate their knowledge and understanding. Students are expected to prepare for each lecture by reviewing the content of the previous lectures. This leaves sufficient room for in-class discussion which is essential for processing the content of this course. Students are expected to be present and actively contribute to the discussion during the class.

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Assessment

  • 20% quizzes during class
  • 40% written midterm exam
  • 40% written final exam
  • 10% bonus for active participation

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Prerequisites for participation and waiting lists

Positive completion of Course I and Course II

Registration via LPIS

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Readings

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Last edited: 2023-12-04



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