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.

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.