Syllabus
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Course Code: M-BECOE -025 Course Name: Elective Course - Economics of Insurance-I |
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| MODULE NO / UNIT | COURSE SYLLABUS CONTENTS OF MODULE | NOTES |
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| 1 | Rationale of Insurance Risk: Measurement, Perception, and Management; Macroeconomic Importance of Insurance; Nature, Functions, Elements, Principles and Fields of Insurance; Major Determinants of the Demand for Insurance; Risk management applications. Reading List • Beard, R.E., Pentikainen, T., & Pesonen, E. (1984). Risk Theory: The Stochastic Basis of Insurance. London: Chapman and Hall • Zweifel, Peter & Eisen, Roland. (2012). Insurance Economics. Springer. |
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| 2 | Demand for Insurance Insurance Demand: The Expected Utility Maximization Hypothesis; Theory of Insurance Demand- The Basic Model, Insurance Demand in the Presence of Irreplaceable Assets; Demand for Insurance Without Fair Premiums; Demand for Insurance with Multiple Risks; Critique of the Expected Utility Hypothesis and Alternatives; Risk Management and Diversification; Risk Management, Forward Contracts, Futures, and Options. Reading List • Beard, R.E., Pentikainen, T., & Pesonen, E. (1984). Risk Theory: The Stochastic Basis of Insurance. London: Chapman and Hall • Zweifel, Peter & Eisen, Roland. (2012). Insurance Economics. Springer. |
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| 3 | Supply Side of Insurance Financial Statements of an Insurance Company; Functions of Insurers; Underwriting Policy; Controlling Moral Hazard Effects; Reinsurance; Insurance and law of Contract; The Supply of Insurance- Traditional Premium Calculation, Financial Models of Insurance Pricing; Economies of Scope; Economies of Scale. Reading List • Beard, R.E., Pentikainen, T., & Pesonen, E. (1984). Risk Theory: The Stochastic Basis of Insurance. London: Chapman and Hall • Zweifel, Peter & Eisen, Roland. (2012). Insurance Economics. Springer. |
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| 4 | Insurance Regulation Asymmetric Information and Its Consequences; Moral Hazard; Adverse Selection; Objectives, Theories and Types of Insurance Regulation; Effects of Insurance Regulation; Recent Trends in Insurance Regulation; Insurance regulation & Development Authority. Reading List • Abraham, K.S. (1995).Insurance Law and Regulation: Cases and Materials. Westbury NY: The Foundation Press. • Dionne, G. & Harrington, S.E. (Ed.). (1997).Foundations of Insurance Economics. Kluwer academic Publishers, Boston. • Zweifel, Peter & Eisen, Roland. (2012). Insurance Economics. Springer. |
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