Module Code - Title:
AC6191
-
UNDERWRITING RISK
Year Last Offered:
2024/5
Hours Per Week:
Grading Type:
N
Prerequisite Modules:
Rationale and Purpose of the Module:
The purpose of this module is to instruct students on the principles and practices involved in underwriting. The module will afford students' knowledge on the state of the art of underwriting across a range of business lines. The interest in, and study of, risk has grown significantly due to improvements in the technology used to assess and measure risk and the development of innovations in the insurance and capital markets that control risk. Insurance is one of the main mechanisms used to control risk, through the transfer of that risk to a third party, usually an insurance company. The insurance company in turn is exposed to a variety of risks and can transfer some of these through reinsurance whilst other risks can be controlled using alternative markets.
Syllabus:
Over recent years the insurance industry has faced a period of rapid change and consolidation, with recent natural and man-made disasters highlighting the problems that the industry faces. This module aims to develop the students' knowledge of the fundamentals that determine pricing and risk management strategies. The topics include Probability and Distributions, Insurance Product Design, Property and Casualty Insurance, Corporate strategy and Underwriting Strategy, Underwriting and Risk Controls, Risk Capacity, Structured Insurance and Alternative Risk Transfer, Underwriting and Emerging Risks, and Moral Logic of Insurance.
Learning Outcomes:
Cognitive (Knowledge, Understanding, Application, Analysis, Evaluation, Synthesis)
On successful completion of this module, students will be able to:
• Identify the fundamental principles underpinning the characterisation and pricing of risks.
• Develop the ability to frame and engage with problems pertaining to an integrated approach to risk management
• Appraise the assumptions and limitations of risk forecasting models, recognising the complexities and interdependencies of key risks.
• Gain an understanding of the nature of the underwriting markets and the interaction between corporate objectives and risk modelling.
Affective (Attitudes and Values)
On successful completion of this module, students will be able to:
• Demonstrate an appreciation for the value of market experience and relationships in understanding insurance placements.
• Demonstrate an appreciation for the significance of moral logic in insurance.
Psychomotor (Physical Skills)
N/A
How the Module will be Taught and what will be the Learning Experiences of the Students:
The module will be taught through a combination of lectures, tutorials, guest speakers and lab sessions through which the student will acquire the fundamental knowledge required to develop an understanding of the interdependencies of risk management and insurance. The module will engage students in discussions on innovative modelling techniques and developments in the insurance of emerging technologies, promoting agility to respond to contemporary issues and challenges.
Research Findings Incorporated in to the Syllabus (If Relevant):
Prime Texts:
Barrieu, P., and Albertini, L. (2010)
The Handbook of Insurance-Linked Securities
, Wiley
Other Relevant Texts:
Baker, T. and Shortland, A. (2022)
Insurance and enterprise: cyber insurance for ransomware
, Geneva Papers on Risk and Insurance-Issues and Practice
Dicks, D.L. and Garven, J.R. (2022)
Asymmetric information and insurance cycles
, Journal of Risk and Insurance
Stricker, L., Pugnetti, C., Wagner, J. and Zeier Röschmann, A. (2022)
Green Insurance: A Roadmap for Executive Management
, Journal of Risk and Financial Management
Adams, M., Upreti, V. and Chen, J. (2019)
Product-market strategy and underwriting performance in the United Kingdom's property-casualty insurance market
, European Journal of Finance
Bharathkumar, S. R. (2018)
An Empirical Study of Insurance Performance Measure
, Journal of Applied Corporate Finance
Cummins, J. and Weiss, M. (2009)
Convergence of Insurance and Financial Markets: Hybrid and Securitized Risk¿Transfer Solutions
, Journal of Risk and Insurance
Meier, U. and Outreville, F. (2006)
Business cycles in insurance and reinsurance: the case of France, Germany and Switzerland
, Journal of Risk and Insurance
Porrini, D. (2015)
Risk Classification Efficiency and the Insurance Market Regulation
, Risks
Programme(s) in which this Module is Offered:
MSINRMTFA - INSURANCE AND RISK MANAGEMENT
Semester(s) Module is Offered:
Autumn
Module Leader:
orla.mccullagh@ul.ie