Introduction to Insurance
Use of ICT
- Class participation: 15%
- Term paper : 20%
- Final exam: 65%
In modern societies, individuals and households face an ever increasing set of risks that may threaten their economic wellbeing. The theory of human capital may be used to determine the economic status of each person. Then, the purpose of insurance is to protect this level of economic wellbeing from any insurable risk, by using the appropriate insurance contract.
As far as the business firms are concerned, risk management consists of managing the full spectrum of risks, in order to maximize the value of the firm. Special attention is given to the problems of moral hazard and antiselection.
At he end of this course, students should be able:
- To recognize the total spectrum of risks, both pure and financial risks.
- To use statistical tools in order to measure risks.
- To identify and measure risks tha t may affect persons and households, as well as the risks of corporations
- To analyze the basic insurance contracts.
- To determine the relationship of private an social insurance.
This introductory course offers a holistic approach to the risk management process of both individuals and business firms, for insurable risks as well as financial, operational and strategic risks.
In the first part, the general risk management theory and practice are developed and the major methods of managing risks are presented.
In the second part, the focus is on the insurance mechanisms, that represent the most developed tools of managing risks for individuals and firms. The major types of insurance contracts are presented, as well as their particular characteristics.
M.Nektarios, Insurance and Risk Management, (Athens, Papazisis, 2014)
