This module will provide you with the opportunity to develop knowledge on the operation of individual reinsurance contracts and risk transfer instruments.  The module also  seeks to develop broader knowledge and critical thinking skills that are required to navigate an industry that is being reshaped by a shift in fundamental conditions relating to both  the underlying risks addressed in contracts and the approaches used to model and transfer those risks.

The first part of the module  will focus on building  students' knowledge of the application of reinsurance contracts in the management of insurance risks. The conditions that drive pricing, competition and regulation in the reinsurance markets are explored. The module also examines the range of alternative risk transfer products and contracts that are used to control and disperse specific elements of insurance risks. These alternative risk transfer techniques very often integrate the insurance and capital markets. The second part of the course begins by looking at alternative risk transfer. The techniques and instruments used by companies as an alternative to insurance purchasing and risk financing will be explored, including finite reinsurance, risk swaps/insurance-linked warranties (ILWs) and catastrophe bonds. The regulatory environment around the operation of self-insurance schemes and captive insurance companies is explored.

On successful completion of this module, students will be able to: Classify reinsurance contract types and analyse how reinsurance contracts can be deployed to address specific risk transfer requirements of ceding companies. Analyse the interaction between capital structure, macroeconomic conditions and reinsurance pricing and demand. Assess the implications of changes in the political and regulatory environment as well as technological changes on the design and functioning of reinsurance marketplaces. Analyse the implications of physical and transition risks on reinsurance availability and the delivery of alternative risk transfer instruments.

On successful completion of this module, students will be able to: Challenge the role of the reinsurance sector in maintaining covers for unsustainable corporate and household decision-making. Reflect on the perspectives of stakeholders that rely on reinsurance and alternative risk transfer to support the financing of large-scale risks.

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This module is taught through a series of two lectures and one tutorial per week. Students will participate in an inclusive and active environment where they can test their technical knowledge on reinsurance and other risk transfer contracts. Students will be encouraged to collaborate in small groups to discuss and evaluate the implications of climate change and biodiversity loss for the reinsurance sector. Students are expected to carefully review the assigned reading material before each session, diligently work on the assigned problems/ questions and cases, and to participate actively in the class discussions.