Chair of Finance










Actuarial Techniques in the Insurance Industry (WT)



B.WIWI-BWL.0023




Instructor:

Prof. Dr. Martin Balleer










Assessment methode:

Exam: E-Exam, 120 Min. (6 CP)




Recommended prior knowledge:

Corporate finance




Examination requirements:


  • Demonstration of knowledge of the functioning of an insurance market and its key determinants and concepts,

  • Demonstration of knowledge of risk management, solvency requirements, and risk assessment,

  • Demonstration of knowledge of risk policy and business models in the insurance sector,

  • Demonstration of knowledge of risk transfer financing,

  • Assessment of the role of the insurance industry in the credit market and statutory insurance systems,

  • Simple calculations relating to insurance mathematics.







Qualification objectives/skills:

Students will acquire the following skills and knowledge:


  • Knowledge and understanding of how insurance markets work,

  • Knowledge and understanding of business models and technical fundamentals in life, health, property and casualty insurance, reinsurance, and occupational pension schemes,

  • Knowledge and understanding of risk management and solvency regulations, including risk assessment methods,

  • Knowledge and understanding of financing processes, including the creation of provisions in the insurance industry,

  • Ability to assess the key differences between the business models of the private insurance industry, statutory insurance systems, and the banking industry,

  • Knowledge of the instruments of an insurance company's risk policy, including specific practical examples,

  • Ability to perform simple calculations relating to insurance mathematics.






Lecture content:


    1. Definitions, structure, and elements of risk transfer

    2. Elements of risk policy (including the basics of premium calculation and differentiation, risk selection and underwriting, reservation policy, claims management, reinsurance, and co-insurance)


    3. Business models of insurance lines (life insurance, health insurance, non-life insurance, reinsurance)

    4. Risk management and solvency regulations, in particular Solvency II

    5. Financing and capital investment