Institut für Risikomanagement und Versicherung




Insurance Economics

Jie Ying; Lu Li

Course Description

This course deals with core concepts of the theory of insurance demand. After a review of 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, moral hazard and insurance fraud 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.

The exam review (Klausureinsicht) will take place on Friday Aug 24th from 10:00 a.m. to 11:00 a.m. in Room 314, Schackstr. 4. Students who wish to attend need to register by writing an email to Lu Li no later than Wednesday Aug 22nd.

Further Information