COURSE TITLE: Theory of insurance
TEACHER’S NAME: Prf. Ianaki Andreev, PhD and Tzvetelina Andreeva, PhD
Content of the course covers keyissues in the fieldof moderninsurancetheory and practice.Its purposeis to providesystematic knowledgeabout the basics ofinsurance- nature,functions, elements, types, etc. Besides thetheoretical backgroundof the students, the curriculum of thiscourse focusesonthe acquisition ofpractical skillsthroughdeveloping various examplesand case studieson giventopics. The courseshould be conductedwith the understandingthat it will not be possible within the single semester examine in depth covered topics in all their aspects and details.
- LANGUAGE OF TEACHING
- COURSE CONTENT (TOPICS)
The units or topics of study.
№ / TOPICS – Part – 1 /15 hours/ / Hours of lectures / Extracurricularwork
rrttrtrt 1rt1 /15hours/
1 / Introduction to Insurance. Historical development of
insurance. Functions of insurance. / 3 / 2
2 / Risk and insurance. The nature and meaning of risk. Risk classification. The management of risk. / 3 / 4
3 / Types of insurance. Elements of the insurance – insurer, insured,
sum insured, value, premium, forms of insurance. / 3 / 5
4 / Technical reserves of the insurance companies, deductible, premium calculation, expenditures, preventive measures. / 2 / 5
5 / Insurance contract – definition, main characteristics and elements. / 2 / 2
6 / Reinsurance – definition, functions, types. / 2 / 5
1 / Regulatory frameworkofinsurance / 3 / 2
2 / Insurance and reinsurance intermediaries. / 3 / 2
3 / Insurance products:
-General Insurance products and Life Insurance products
-Life Insurance products
- Liability insurance products / 9 / 18
№ / TOPICS / Hours of seminars / Extracurricularwork
1 / Revealingthe natureand functions ofinsurance. / 2 / 0
2 / Risk and classifications of risk. Methods forrisk assessment. / 4 / 3
3 / Gainingpracticalknowledge aboutthe elements ofinsurance. / 6 / 6
4 / Technicalreserves ofinsurance company. Types ofdeductibles. Premium calculation. / 6 / 6
5 / Types ofreinsurance. Examples ofthe mechanism of functioning
of different types ofproportional and non-proportional
reinsurancetreaties. / 2 / 6
6 / Legal framework and government supervision. / 2 / 4
7 / Acquaintance withpractical aspectsof insurance in:
- General Insurance
- Life Insurance
- Liability insurance / 8 / 20
- METHODS OF TEACHING
Method: The course will be mostly based on lectures, class seminars, consultations and individual training. There will be in class exercises and examples will be given. Students should prepare presentations on selected topics. Individual training will be encouraged through assignments and by solving practical problems.
Requirements: The formal course requirements are: completion of assignments, ten page paper on specific topic and final examination. Students are strongly encouraged to discuss the choice of topic with the professor and assistant professor. The class will make use of a diverse set of materials and sources, many available online.
Intensive class participation and careful study of the assigned readings are absolutely essential to the success of the course.
Necessaryresources: Whiteboard,multimedia projector, laptop
- LEARNING OUTCOMES
The coursewill providebasicknowledge and skills inthe field of insurancerequired formultilateraltraining of future specialists with Bachelor degree in"Finance". Besidesacquiringtheoretical knowledge, the course aims togivepractical skills as well. In this regard,the curriculumincludesissuesdevoted tospecific types ofinsurance products andtheir features.
- ASSESTMENT METHODS
The final grade will be determined by the the final exam /80%/, students’ classroom participation in discussions, analysis of assigned readings and multi-media presentations on different topics /10%/, as well as class presentation of the term project on approved topic /10%/.
The finalgrade is based onasix-point scale, the minimum gradefor successfulcompletion of the courseis "Medium / 3 /"; comparabilitywith the European systemof credit transferis as follows:
Excellent /6/ / Very good /5/ / Good /4/ / Medium /3/ / Bad /2/
A / B / C / D / F
Credits will be given based on the curriculum / No credits are given
- REFERENCES (MANDATORY AND RECOMMENDED)
Bland, D., Insurance: Principles and practice, CII, 2000
Insurance, CIB, 1996
Vaughan, E., T. Vaughan. Fundamentals of Risk and Insurance, John Wiley & Sons, 2003
Rubin, H. Dictionary of Insurance Terms, Barron’s, 199
Management of insurance operations, Ian Bates & Derek Atkins, 2-nd edition, 2007, UK
Risk management and Insurance, Harold. D. Skipper, W. Jean Kwon, 2007, USA
Risk & Insurance, Mark R. Green, James S. Triesehmann, 1984, USA
Reinsurance, Edited by Robert W. Strain, 1980, NewYork
Андреев, Я. Общо застраховане – принципи и практика, София, 2006
Андреев, Я. Застрахователни термини, Враца, 2008.
Андреев, Я., Андреева, Цв., Андреев, Р. Презастраховане – Принципи и практика, С, 2004г.
Андреева, Цв., Управление на риска на застрахователното дружество, УИ „СТОПАНСТВО”,С. 2009
Ботев Г., Ж.Каличин. Оценка и управление на риска в общото застраховане, Бургас, 1999.
Гаврийски, В. Икономика на застраховането, София, 1998
Драганов Хр., Б.Илиев и др. Застраховане, „Форком”, София, 1998
Драганов, Хр., М. Нейков. Имуществено и лично застраховане, Тракия-М, 2000
Йотов, Й., Б.Илиев. Основи на застраховането, Свищов, 2004
Йотов, Й. Лично застраховане, София, 2012
Илиев, Б., Й. Йотов.Застрахователен мениджмънт, Свищов, 2002 Илиев, Б. Управление на риска в застрахователните дружества, АИ „Ценов” Свищов, 1994
LEGAL FRAMEWORK CONCERNING INSURANCE:
Financial Supervision Commission Act
Export Insurance Act
Ordinance No. 24 of 08.03.2006 on the Compulsory Insurance Pursuant to Items 1 and 2 of
Article 249 of the Insurance Code and on the Procedure of Settlement of Claims for
Compensation of Damages Caused to Motor Vehicles
Ordinance No. 27 of 29 March, 2006 on the procedure and methodology of formation of the technical reserves by insurers and reinsurers, and of the health insurance reserves
Ordinance No. 21 of 16 March, 2005 on the own funds and solvency margin of
insurers, reinsurers and health insurance companies