Type of Credit: Required
Credit(s)
Number of Students
This course is to introduce the theory of risk and insurance, including insurance decision-making, insurance contracts, and insurance operations.
能力項目說明
The objective of this course is to develop the basic microeconomic models for risk and insurance with setting that economic agents are faced with uncertainty. The main topics include decision making under uncertainty, insurance demand, adverse selection, moral hazard, and insurance company operations. The models and cases discussed in this course are adaptable to many situations in finance and economics, but with a emphasis on insurance markets as means of transferring risk and wealth.
| 教學週次Course Week | 彈性補充教學週次Flexible Supplemental Instruction Week | 彈性補充教學類別Flexible Supplemental Instruction Type |
|---|---|---|
|
週次 Week |
課程主題 Topic |
課程內容與指定閱讀 Content and Reading Assignment |
教學活動與作業 Teaching Activities and Homework |
學習投入時間 Student workload expectation |
|
|
課堂講授 In-class Hours |
課程前後 Outside-of-class Hours |
||||
|
1 |
Introduction |
Developments in Risk and Insurance Economics |
Ins Paper 01, 02 |
3 |
3 |
|
2 |
Economic Security of insurance |
Role of Insurance in Reducing Losses |
Ins Paper 03, 04 |
3 |
3 |
|
3 |
Demand for Insurance |
Risk and Utility; The Law of Large Numbers |
Ins Paper 05, 06 |
3 |
3 |
|
4 |
Insurance Contract |
Legal Principles in Risk and Insurance |
Ins Paper 07, 08 |
3 |
3 |
|
5 |
Moral Hazard |
Effect of Group Size |
Ins Paper 09, 10 |
3 |
3 |
|
6 |
Adverse Selection |
Economics of Imperfect Information |
Ins Paper 11, 12 |
3 |
3 |
|
7 |
清明節放假 |
|
|
|
|
|
8 |
Strategic Risk Taking |
Market Insurance, Self-Insurance and Self-Protection |
Ins Paper 13, 14 |
3 |
3 |
|
9 |
期中考 |
|
|
|
|
|
10 |
International Insurance |
International Comparison of the Insurance Industry |
Ins Paper 15, 16 |
3 |
3 |
|
11 |
Market Structures |
Concentration, Mergers, and Entry Barries |
Ins Paper 17, 18 |
3 |
3 |
|
12 |
Organizational Form and Efficiency |
Insurance Cycles; Organizational Form and Insurance Company performance |
Ins Paper 19, 20 |
3 |
3 |
|
13 |
Insurance Marketing |
Economics of Insurance Intermediaries |
Ins Paper 21, 22 |
3 |
3 |
|
14 |
Asset-Liability Management |
Systemic Features of Insurance and Banking |
Ins Paper 23, 24 |
3 |
3 |
|
15 |
Insurance Regulations |
Risk-Based Capital and Solvency II; Rate Regulation in Auto Insurance |
Ins Paper 25, 26 |
3 |
3 |
|
16 |
Solvency Prediction |
Cost of Ins Co Failures; Systemic Risk and the Financial Crisis |
Ins Paper 27, 28 |
3 |
3 |
|
17 |
Presentation |
Presentation |
Term paper |
3 |
3 |
|
18 |
期末考 |
|
|
|
|
This course adopts participant-centered learning (PCL) approach. In addition to lecturing basic principles of risk and insurance, this course emphasizes case studies and encourages learning through group discussion and class participation. Thus students must always be well prepared before the class to ensure productivity.
exams 60%, term paper 20%, presentation and discussion 20%.
G. Rejda,”Principles of Risk Management and Insurance,” 12th ed., 2014, Pearson
P. Zweifel and R. Eisen, "Insurance Economics," 2012, Springer.
Journal articles.