Last Updated:
29/11/2019 - 15:23

IAM547 - Risk Management and Insurance

Credit: 3(3-0); ECTS: 8.0
Prerequisites: Consent of Instructor(s)

Course Catalogue Description

Definition of risk, insurance and surety. Risk management techniques and some applications in real life problems. Economic and social significance of insurance. Laws of agency, contract, and negligence and their applications to insurance. Types, scope and organization of insurance companies. Construction of policies including limitations on recovery. Underwriting, marketing, rating and regulation of insurance. Covers the principles of risk management, property-liability insurance and life health insurance. Insurance regulations, laws, and insurance practice in Turkey.

Course Objectives

Financial objectives of corporate risk management process, empirical evidence of how and why firms manage risk, institutional environment and regulations of risk management. This course surveys risk fundamentals, the risk management process, and insurance as a systematic approach to transfer and finance risk. It examines how to determine, analysis and evaluate risk for different types of insurance and how insurance offers financial protection against major risks individuals face, how the insurance market is structured, and how and why the industry is regulated. This course also provides the theories and practical applications from the industry as well as issues related to the furtherance of insurance as a viable risk management solution.

Course Learning Outcomes

Understanding the risk structure and the methods to handle the risk in insurance, how to determine risk for different types of insurance, insurance operations and products.

Tentative (Weekly) Outline

  1. Basic concepts in insurance: hazard, risk, insurable risk, coverage, insurance terms and conditions, loss assessment
  2. Risk management
  3. Risk measures
  4. The need for and development of insurance, Insurance policy: contents, types, special features; Types of insurance: Property and casualty, liability, life
  5. Types of Insurance companies: Insurance, reinsurance, mutual, composite Insurance market and key players, Key insurance professionals: actuary, agency, broker, loss adjuster, Reinsurance
  6. Pricing in insurance
  7. Accounting and financial analysis in insurance: Technical reserves
  8. Insurance Law in Turkey- Guest Speaker
  9. Risk measures, VaR, Coherent risk measures
  10. Dependent risk measures
  11. Term Project presentations and discussions

Course Textbook(s)

  • Principles of Risk Management and Insurance, Rejda, Adison Wesley
  • Risk Yönetimi ve Sigorta, M.Çipil, Nobel Yayın Dağıtım
  • Hossack, Pollard, Zehnwirth, Indroductory statistics with applications in general insurance, Cambridge, 1995

Supplementary Materials and Resources

  • Trieschmann, Hoyt, Sommer, Risk Management and Insurance, 12th Ed., 2005
  • Vaughan, E., Vaughan, T., Essentials of Insurance: A Risk Management Perspective
  • Temel Sigortacılık Bilgileri ve Uygulamalı Hasar Yönetimi, T. Alpay, Yüce Yayımları
  • Uygulamalı Sigorta Hukuku: Mal ve Sorumluluk Sigortaları 5684 Sayılı Sigortacılık Kanununa Göre, Turhan Kitabevi

More Info on METU Catalogue