INSURANCE AND PENSION FUND TECHNIQUE
Learning outcomes of the course unit
Knowledge and understanding:
The course aims at:
- introducing the basic technical principles of the management of an insurance or
- describing life and non-life insurance products, with fixed benefits and with
participating and unit-linked benefits;
- investigating the risk management process for an insurer or a pension fund.
Applying knowledge and understanding:
With regard to living benefits (provided by insurers and pension funds), the student
learns the basic actuarial tools for the pricing and reserving of insurance products,
the assessment of profits and the basic steps of the insurance risk management.
The expertise gained by the student on the topics dealt with in the course are
suitable for several positions in an insurance company or a pension fund. Outside
the insurance area, the knowledge provided by the course can help in
understanding the features of the risk management services provided by an
insurance company to an industry or an individual.
The course stimulates the ability to perform a critical analysis, as it is expected from
a post-graduate students in the economic area, who is employed in the financialinsurance
sector. The student is able to interpret critically the output of actuarial
valuations, and she is also able to adopt autonomously simple actuarial models.
The student is educated in the use of the basic actuarial-technical language.
Therefore, she is able to communicate efficiently with whom is in charge of actuarial
valuations. She can coordinate the more strictly technical staff with those charged
with more managerial duties.
The students develops the ability to interpret the technical aspects of life insurance
and pension problems. She can understand the quantitative models more suitable
for solving such problems. In particular, the student learn how to use nonsophisticated
quantitative models and is able to go deeper into the subject in order
to understand more advanced quantitative models.
Basic knowledge of financial mathematics and probability.
Course contents summary
Risks: representation, transfer. The features of a pool of risks.
Technical aspects of the risk management of an insurer.
Technical aspects of life insurance products with fixed benefits:
premiums, reserve, profit.
Participating and unit-linked life insurance products.
Private pension solutions.
The risks of a pension management.
Available online, on the Elly platform.
During the teaching period, the detailed program will be updated weekly.
- A. Olivieri, E. Pitacco. Introduction to insurance mathematics. Technical and financial features of risk transfers. Springer. 2nd Edition, 2015
- Course slides, available online on the Elly platform or in printed version at the Copy Centre of the Department of Economics and Management.
Lectures and group work.
During classes the theoretical features of models will be described, as well as their
operative profiles (through the discussion of numerical examples). The student will
be assigned problems which she has to solve autonomously after classes, so to
develop her own ability to use the models presented during classes.
Undertaking group work is optional, and limited to the teaching period. The work consists in studying and discussing a scientific paper chosen from a list provided by the lecturer.
Assessment methods and criteria
Written exam, possibly followed by an oral exam (upon student’s request).
Knowledge and understanding will be assessed through the request of solving three
numerical problems as well as interpreting the numerical findings. The maximum
possible grade is 10 for each problem.
The assessment of applying knowledge and understanding, making judgements
and communication skills will be based on the interpretation provided for the
In the interpretation of the numerical findings and, in case of oral examination, in the
oral discussion the student must show her communication skills, in particular with
regard to the appropriate technical language.
The possible work group will be assessed considering understanding of the paper and the communication ability in presenting its main content. The student undertaking group work is exempted from a part of the written exam and from the oral exam. The participation to group work is limited to the teaching period. Detailed information are available online, on the Elly platform.