2014-02-25

1

INSURANCE

MSc Maria Wąsewicz
Institute of Finance Management
Depatment of Insurance

E-mail:

[e-mail]

Website:

http:// ku.ue.wroc.pl

Students’ hours
Friday: 18:15-19:30
Saturday 10:00 – 10:45, room 705 Z

Literature

• Rejda G.: Principles of risk management and insurance, HarperCollins

College Publishers, NY

• Vaughan E.J., Vaughan T.M., Fundamentals of Risk and Insurance, John

Wiley & Sons, New York 2003

• Black K., Skipper H.D., Life & Health Insurance, Prentice-Hall, Upper

Saddle River, New Jersey 2000.

• Atkins D., Bates I., INSURANCE, Global Professional Publishing 2008

• Insurers websites
• CEA website
• KNF website (

www.knf.gov.pl

)

RULES

 presentation (5 points)
 case (5 points)
 test - including all topics discussed during the classes (10 points)

• if the student cannot participate in presentation/ case or test,

he/she must inform the tutor before the classess

• if the student receives a negative grade into his grades’ book

he/she can participate in a resit

• during the resit students can rewrite ONLY TEST

no.

Date

Topics

1

2014-02-21

Introduction to insurance

2

2014-02-28

Insurance industry

3

2014-03-07

Homeowner insurace

4

2014-03-14

Third part liability insurance

5

2014-03-21

Transport insurance

6

2014-03-28

Travel insurance

7

2014-04-04

Business insurance

8

2014-04-11

Business insurance

9

2014-04-25

Case

10

2014-05-09

Pension systems

11

2014-05-23

Life insurance

12

2014-05-30

Health insurance

13

2014-06-06

Finance of insurance companies

14

2014-06-09

Early exam

15

2014-06-12

2014-02-25

2

Choose the topic of your presentation

What is insurance?

Why or when do we need insurance?

What product do you need?

What is insurance?

• etymology of the word „insurance” - secura, securus (latin) - safe

• a lot of definisions – professional and unprofesssional

• „economic mechanism, providing cover for future property

needs, which occur among particular entities and which are
caused by random events

for which a certain regularity is

typical; the cover is organized in this way that the burden of
coverage is spread over many entities for which the risk of the
random event exists”

„[…] urządzenie gospodarcze, zapewniające pokrycie przyszłych potrzeb majątkowych, wywołanych u poszczególnych jednostek przez odznaczające się pewną prawidłowością
zdarzenia losowe, w drodze

rozłożenia ciężaru tego pokrycia na wiele jednostek, którym te same zdarzenia losowe zagrażają” - J. Łazowski, Wstęp do nauki o ubezpieczeniach,

Warszawa 1934, Powszechny

Zakład Ubezpieczeń Wzajemnych, s. 6.

The key - The risk attitude

determined by:

age,

gender,

occupation,

nationality,

family status

…..

2014-02-25

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Functions of insurance

PROTECTION

Providing coverage for person insured against random events consequences

In case of risk realization insurance company takes over the financial
consequences of the risk realization

Compensation covering the losses being a consequence of risk realization

PREVENTION

Prevention of loss occurence (bonus-malus system, discounts for no-loss contract
continuation)

Exclusions of responsibility, deductibles

Selection and underwriting

FINANCING

Accumulation of insurance premiums

Creation of insurance fund

Investing in financial markets

Reserving

REDISTRIBUTING

Risk is not the loss itself, but the uncertainty that a loss might occur

Uncertainty of:
• the loss occurence
• the term of loss occurence

Kinds of risk

Objective

Subjective

Speculative

Pure

Particular

Fundamental

Risk Managment Methods

Risk

identyfication

Risk

quantifyng

Risk

managment

Risk

controlling

5 basic risk management methods:

a) Risk avoidance

b) Risk distribution

c) Risk swapping

d) Risk retention

e) Risk transfer

Insurance contract

basic definitions

2014-02-25

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Thank you for your attention