363-1017-00L  Risk and Insurance Economics

Semester Spring Semester 2017
Lecturers W. Mimra
Periodicity yearly course
Language of instruction English

Abstract The course covers economics of risk and insurance. Topics covered are fundamentals of insurance, risk measures and risk management, demand and supply of insurance and asymmetric information in insurance markets.
Objective The goal is to introduce students to basic concepts of risk, risk management and economics of insurance.
Content - fundamentals of insurance
- what is the rationale for corporate risk management?
- measures of risk and methods of risk management
- demand for insurance
- supply of insurance
- information problems in insurance markets: moral hazard, adverse selection, fraud
Literature - Peter Zweifel and Roland Eisen (2012), Insurance Economics, Springer.
- S. Hun Seog (2010), The Economics of Risk and Insurance, Wiley-Blackwell.
- Ray Rees and Achim Wambach (2008), The Microeconomics of Insurance, Foundations and Trends in Microeconomics: Vol. 4: No 1-2.
- Eeckhoudt/Gollier/Schlesinger (2007), Economic and Financial Decisions under Risk, Princeton University Press.
- introductory background reading: Harrington/Niehaus (2003), Risk Management and Insurance, McGraw Hill.