Economics of Insurance and Actuarial Science
Instructor: Бојан Башкот, PhD, Associate Professor
The program of this subject enables students to master the most important economic and technical basis of insurance as a form of economic protection of individuals, businesses and other institutions from sudden and unexpected adverse events. The program structure offers a comprehensive view of the development of domestic insurance theory and practice, as well as contemporary foreign experiences and achievements in terms of successful risk management whose occurrence can endanger the lives and physical integrity of the huge number of people and property acquired during the years.
| Code : | О17ФЕОА |
|---|---|
| Status: | C |
| Semestar: | 8th |
| Number of classes per week: | 4+3 |
| ЕECTS: | 6 |
| Teachers: |
Бојан Башкот,
PhD Associate Professor |
| Prerequisites: | |
| Learning Outcomes (gained knowledge): | The students are gaining and developing knowledge and abilities that enable them to individually organize, coordinate, monitor and supervise the activities of certain segments of the insurance industry, both in the field of economy and in the state institutions and regulatory bodies. Since the insurance is a specific type of industry, and the business operations of insurance companies are subject to a number of unexpected risks, uncertain by its origin, scope and intensity, mastering the offered contents can significantly mitigate or even neutralize the consequences of adverse events. |
| Subject Contents: | General characteristics of insurance; Organization of insurance in our country and in the world; Documents in insurance; Risk Management; Types of insurance; Insurance of: property, persons, agriculture, animals, transportation and loans, and motor vehicles; Life insurance; Warranty insurance; International conventions in automobile liability insurance; Coinsurance; Reinsurance; Determining the cost of insurance; The actuarial basis of calculation of tariffs in insurance of persons; Mortality tables; Interest rates; The calculation of tariffs in life insurance; Cumulative numbers; Determining the costs of implementing insurance; Retention: the concept of maximum retention, factors and manners of determining the retention; The calculation of the retention by types of insurance; PML and the method of its determining; Technical reserves: types, methods and ways of calculation; Funds for the coverage of technical reserves. Guarantee Fund. Determining the solvency margins of life and non-life insurances; The method of calculation of the solvency margin; The solvency margin and investment funds; The calculation of interest rates and cumulative numbers; Determining the costs of implementing insurance; Calculation of technical reserves. |
| Teaching Methods and Learning Activities: | Lectures followed by presentations in the form of graphics and drawings, enabling the students to visually detect the most important economic principles. Within the planned number of hours for exercises the practical tasks are solved in the field of: tariffs and the cost of insurance, the cost of implementing insurance, actuarial basis of calculation of tariffs of life insurance, PML and retention for different types of insurance, calculation of solvency margin, calculation of mathematical reserves, etc. |
| Literature: | Šipka, D.; Marović, B. (2003). Insurance Economics. Banja Luka: Faculty of Economics; Kočović, Ј. (2000). Actuarial Basics of Formation of Tariffs in Insurance. Belgrade: Faculty of Economics. |
| Types of Assessment for the subject: | Colloquium I (0-20 points); Colloquium II (0-20 points); Final exam (0-50 points); Attendance (2point); Class activities (seminar papers, discussions, case studies) (0-8 points) |
| Special Remarks for the subject: |