Insurance Management

Risk and Capital Management in Insurance Companies

Integrated course, 3.00 ECTS

 

Course content

This course deepens the understanding of risk management as a central driver of success of insurance companies. The connection between risk and return in the insurer's core business is established and the impact of regulation is discussed in detail. In a case study, students construct a model to compute the capital requirements of an insurance company, which will allow them to test the impact of various risk/return factors on financial results.

The core contents of this course include:
[1] Types of risk in insurance;
[2] Financial reporting, supervisory and regulatory requirements;
[3] Connection between portfolio risk and capital requirements;
[4] Detailed discussion of regulatory regimes (e.g. Solvency II);
[5] Design and implementation of a risk-based capital model (e.g. Solvency II);
[6] Risk and capital budgeting in insurance companies.
Optional contents can include:
[8] Control of operational and other risks;
[9] Risk management through reinsurance and risk securitisation.

Learning outcomes

Graduates are familiar with the framework conditions and challenges in the areas of risk and capital management in insurance companies and are able to link these in the sense of cross-company management. In doing so, a holistic understanding of the added value of an insurance company is created, on which the subsequent modules can build and thus allow for product and sales discussions from an integrated management perspective.
In addition, detailed knowledge of the current regulatory framework is conveyed.

Recommended or required reading and other learning resources / tools

References: Briys/de Varenne (2001): Insurance: From Underwriting to Derivatives, Wiley. Hallmann et al (2008): Steuerung von Versicherungsunternehmen, Schäffer-Poeschel. Nguyen/Romeike (2013): Versicherungswirtschaftslehre, Springer. Noack et al (2010): 100 Versicherungskennzahlen, cometis. Romeike (2003): Balanced Scorecard in Versicherungen, Gabler. Romeike et al (2008): Risikomanagement im Versicherungsunternehmen, Wiley.
Academic journals: -

Mode of delivery

3 ECTS: ILV

Prerequisites and co-requisites

none

Assessment methods and criteria

ILV: final exam, assessment of active course participation