Banking and Insurance Industry

Premium calculation in the insurance

Integrated course, 5.00 ECTS


Course content

The course embraces the basics of premium calculation for property-casualty and life insurance as well as their legal framework conditions.

The core contents include:
[1] Fundamentals of calculation (principle of equivalence)
[2] Premium calculation in life insurance: calculation bases, premium calculation, actuarial reserve, profit sharing systems
[3] Premium calculation in health insurance: calculation bases, premium calculation, special features of health insurance
[4] Premium calculation in property and casualty insurance: premium calculation models (supply vs. demand-driven pricing) / modern pricing techniques

Learning outcomes

After completing the insurance premium calculation module, students are able to comprehend the premium calculation for property, casualty and life insurance and are familiar with the legal basis for the premium calculation, the profit-sharing models and the relationships between premium and actuarial reserve.

Recommended or required reading and other learning resources / tools

Literature: Predota: Prämienkalkulation in der Lebensversicherung: Einführung mit Beispielen aus der Praxis;
Predota: Prämienkalkulation in der Lebensversicherung: Übungsbuch mit Musterlösungen;
Radtke: Grundlagen der Kalkulation von Versicherungsprodukten in der Schaden- und Unfallversicherung;
Albrecht: Grundprinzipien der Finanz- und Versicherungsmathematik, Verlag Schäfer-Pöschel;
Führer, Grimmer: Einführung in die Lebensversicherungsmathematik, Verlag Versicherungswirtschaft;

Mode of delivery


Prerequisites and co-requisites

Quantitative fundamentals, financial, banking and insurance products, main features of the law,

Assessment methods and criteria

Final examination including continuous assessment