Subject
Finance
Program
Master of Science (MSc)
Location
Côte-des-Neiges
Instruction mode
Credits
3
Description
This course explores the dynamic insurance industry's significance for risk management by individuals and corporations. It covers factors influencing insurance choices, insurance company operations, risk management strategies, and market failures.
The insurance market is one of the most mature and sophisticated ones in capitalist societies, where risk management and risk sharing are at the very foundation of capital markets. Insurance plays a crucial role in managing personal and corporate risks. The aim of the course is to introduce the insurance industry to M.Sc. students in finance, financial engineering, applied economics and applied financial economics. Students will learn about the functioning and the challenges of this industry, as well as about the organizational structure of the insurance market and market failures.
Themes covered
1. Insurance Demand
A. Individuals' demand for insurance; B. Corporate demand for insurance; C.Annuities and pensions.
2.The Insurance Company
A. The technology - Pooling of risks insurability ownership structure and distribution; B.Underwriting; C.Premium calculation; D. Accounting and reserving; E. Solvency and market discipline; F. Reinsurance and securitization.
3.Asymmetric Information
A. Models of asymmetric information; B. Empirical evidence of asymmetric information in insurance markets.
4.Special Topics
A. Pension plans B. Climate risk C.The value of a statistical life
Important notes
Course in French : FINA 60220
M. Sc. finance: Préalable(s): MATH 60207(A) ou 60230(A), et MATH 60210(A) ou 60231(A), et FINA 60211(A) ou 60232(A) M. Sc. économie financière appliquée: Préalable(s): MATH 60837(A)(Co) ou être admis à la M. Sc. ingénierie financière
M. Sc. finance: Préalable(s): MATH 60207(A) ou 60230(A), et MATH 60210(A) ou 60231(A), et FINA 60211(A) ou 60232(A) M. Sc. économie financière appliquée: Préalable(s): MATH 60837(A)(Co) ou être admis à la M. Sc. ingénierie financière