Institut für Risikomanagement und Versicherung

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Insurance Economics

***This course will be offered online in summer semester 2021. Please make
sure to register for the course in Moodle. ***

Lecture: Dr. Lu Li
Tutorial: Julia Holzapfel

Course Description

This course deals with the core concepts of the theory of insurance demand. After a review of the essentials of decision theory, the optimal design of insurance products is addressed from an information economics point of view. Optimal risk sharing in a complete information setting is discussed as the benchmark case. The main emphasis is placed on principal agent problems due to superior knowledge of the insured. In particular, the class covers adverse selection and moral hazard which heavily affect almost any real-life insurance market. Implications for product design as well as the interaction between insurance and other markets are analyzed.

Course Format 

Due to the ongoing Covid-19 pandemic, Insurance Economics will be offered online in summer semester 2021. Lectures, tutorials and Q&A sessions will be presented as a mixture of recordings available via LMUcast and interactive live sessions via Zoom. See the timeline below for more details.

We will be using Moodle to share materials, video recordings, links to live sessions, and announcements. Please be sure to register for the course in Moodle in order to be able to participate in the online formats without obstacles and to receive information on updates. The enrolment key for the course can be found in LSF.

Further Information