INSURANCE AND PENSION FUND TECHNIQUE
Learning outcomes of the course unit
Knowledge and understanding:
The student learns the basic technical principles of the management of an insurance or pension business; examines the main structure of life and non-life insurance products, with fixed benefits and with participating and unit-linked benefits; investigates the risk management process for an insurer or a pension fund, understanding the main risk management actions.
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 financial/insurance
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 (since the beginning of lectures) online on the Elly platform and in printed version at the Copy Centre of the Department of Economics and Management.
Face-to-face lectures, tutorial in the Excel framework and group work.
Frontal lecture are designed so to provide a description of the theoretical features of models, as well as their operative profiles (through the discussion of numerical examples). Some numerical assessments are developed in class in the Excel framework. The students has to further practice on models on his own. The student will be assigned problems which he has to solve autonomously after classes, so to develop his own ability to use the models presented during classes.
Undertaking group work is optional, and limited to the teaching period. Group work must be performed after classes. The work consists in studying and discussing a scientific paper chosen from a list provided by the lecturer or, alternatively, in developing and discussing an extended problem in one of the topics of the course, to be arranged in the Excel framework.
Assessment methods and criteria
Written exam, possibly followed by an oral exam (upon student’s request), and joint to group work (optional).
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 test must be completed within 1 hour.
The oral exam lasts 10-15' and consists in one/two questions on the description and understanding of theoretical models.
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 subject, the technical skills 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.
Honors will be awarded to those particularly deserving students who, in addition to having complied with the requisites necessary to obtain full marks, in the performance of the test have proved an appreciable systematic knowledge of the subject, an excellent ability to apply the gained knowledge to the specific problem submitted during the exam, a considerable autonomy of judgment, as well as a particular care in the formal written and oral presentation and excellent communication skills.
During the teaching period it is possible to take the written exam by attending intermediate assessments. Detailed info are available on the Elly platform.
The grade assigned to the written exam will be published on the Esse3 platform within 8 days from the exam. The grade assigned to the oral exam is communicated at the end of the exam.