Learning objectives
In the first module, the whole group of risks characterizing reality in which individuals and companies daily operate it is presented to students, outlining their evolution, their main elements and the phases of risk management. After having addressed study of the risks, focus moves to different methods of theirs management: from risk control techniques (prevention, protection, etc..) to financing techniques (retention, insurance, etc). Advantages and disadvantages of each method are considered in order to identify intervention matching with needs and features of each single case.
Module addressing management of insurance companies analyzes distinctive features of this activity in terms of reverse cycle costs-revenues, technical-insurance management, financial-assets management, balance sheet and its articulation, capital requirements, distribution channels available to the company in order to reach customers. Each single issue is also addressed with specific reference to regulations which in recent years have faced deep changes. Last part of the module is devoted to the analysis of, on one hand, risks covered by most important life and properties insurances life and, on the other hand, text elements that most frequently you found in insurance policies.
At the end of the course, students will have acquired:
a. Knowledge needed in order to understand characteristics of the risks, strengths and weaknesses of each risk management transaction and role and functions of insurance companies and their related distribution channels;
b. Ability in applying the acquired knowledge to a critical analysis of risk management tools and features of insurance business in order to have an aware and consistent decision, in line with needs of customer exposed to risks;
c. Critical capacity (independent judgment) in independently evaluating issues related to identification, quantification and management of risks and selection of appropriate management tools to solve a specific problem;
d. Ability in applying a consistent technical language in communication involving operators from insurance markets, such as risk managers, technicians from companies, agents, brokers, etc..
e. Ability in learning through the logical method based on problems identification and critical analysis of identified solutions.
Prerequisites
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Course unit content
Module “Risks analysis”
1. Logic of risk analysis
2. Taxonomy of business risks in order to balance sheet
3. Phases and approaches to risk management
4. Risk management in complex groups
5. Prior estimate for insurance purposes
6. Evaluation of the retention capacity and comparisons with the insurance
7. Business interruption
8. Crisis management and damage restoration
9. Captive Insurance Company
Module “Insurance management”
10. Insurance markets and intermediaries: institutional and regulatory principles.
11. Insurance process
12. Non-life insurance and life insurance
13. Capital requirements for insurance companies
14. Main non-life insurance contracts
15. Main life insurance contracts
16. Agents
17. Brokers
18. Innovative and alternative insurance channels
19. Risk-taking and claims settlement
20. Pension funds
Full programme
Module “Risks analysis”
The first part of the course aims to examine the main themes regarding pure business risks from the perspective of both their successful management, with evaluation of the alternatives between retention and insurance transfer, and the creation of value for the shareholder. The investigation perspective is essentially economic-financial, so as to provide insurance skills to those who, inside (administrative and financial directors and risk managers) or outside of businesses (consultants, brokers and experts), must tackle the complex problem of protecting the assets and earning power of a business.
Module “Insurance management”
The second part of the course aims to examine the topics of insurance and insurance broking, with consideration of both the products and the management of insurance companies. The investigation perspective is essentially economic-financial, so as to provide the skills necessary for being able to correctly tackle business and personal risk coverage problems, from the viewpoint of the potential client and also of the company providing the service.
The course gives an active education, based not only on the teaching of the technical and theoretical elements of the subject, but also on cases and contributions of leading figures from insurance companies, of insurance distribution and of the bancassurance.
Bibliography
Module “Risks analysis”
- Cacciamani C., Il rischio da interruzione dell’attività di esercizio, Egea, Milano, 2001 (chapters 1, 2, 3);
- Pignolo P., La gestione e la ritenzione del rischio d’impresa, Francoangeli, Milano, 2002;
- Cacciamani C., Rischi puri e valore di impresa, Edizioni Goliardiche, Trieste, 2001 (excluding chapter 3);
- slides produced by external experts.
Module “Insurance management”
- Porzio C., Previati D., Cocozza R., Miani S, Pisani R. (edited by), Economia delle imprese assicurative, McGraw-Hill, 2011 (chapters 1-8 e 11-13);
- slides produced by external experts.
Teaching methods
a. Knowledge and understanding: lectures
b. Applying knowledge and understanding: presentations and contributions by external experts.
c. Critical capacity (making judgments): during the course, students will be encouraged to identify strengths and weaknesses of risk analysis and insurance management.
d. Communication skills: the teacher will illustrate the meaning of the most common terms used by the financial community.
e. Learning skills: each topic will be addressed first, explaining the problem to be solved, and then critically analyzing the adopted solutions.
Assessment methods and criteria
Written or oral test (chosen by the student).
The final test will include 8 open-ended questions (4 questions for module “investment banking” and 4 questions for module “real estate”), evaluated up to 4 points each.
For each question, the maximum score can be reached as follows:
- up to 2,5 points with reference to the check of knowledge and understanding;
- up to 0,5 point with reference to the communication skills with technical language;
- up to 1 points with reference to the learning skills, applying knowledge and understanding, making judgments.
Other information
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