The aim of the course is to analyse the risks and the insurance for the Blue Economy. The first part of the course is related to the identification of risks and their management whereas the central part of the course is devoted to the study of insurance, i.e. the identification of the premium, the insurance management and the process of identification of provision for outstanding claims. Finally, the last part is dedicated to the study of insurance coverage for the maritime industry and especially of the functioning of the Protection and Indemnity clubs.
At the end, the student will be able to: recognize the risks, identify the most effective risk management technique, and estimate the degree of coverage for the Blue Economy firms.
The learning outcomes of the course can be as follows:
Knowledge and understanding: the student has to show of recognizing the risks and of identifying the most effective risk management technique.
Applying knowledge and understanding: the student has to show of applying the knowledge on risks to the main issues related to the risk. At this aim, the professor will show a set of different case studies at the lessons or during the student reception.
Making judgements: the student has to show of estimating the system of risks of the Blue Economy's firms accounting for the impact of the insurance coverage.
Communication: the student has to be able of correctly use the terminology on risks in order to analyse the answers of the written test and of the project work/of the oral test.
Lifelong learning skills: the student has to be able to identify the main risks and the main instruments for their management. Furthermore, the student has to deepen the contents of the course through the independent analysis of further bibliographical references.
Students must know the principles of financial institutions and of corporate finance. Otherwise, it is possible to integrate with a set of bibliographical references.
The risk and its classification. The system of risks and the processes of management and hedging. The insurance premium. The insurance business (collecting of risk exposures, risk management, and lapse management). The undewriting risk and its sub-risks. The operative risk and the enterprise risk. The climate change risk. Solvency II. The insurance for the Blue Economy and the role of the Protection and Indemnity clubs. The different treaties of reinsurance. InsurTech.
The content of the course can be divided into several blocks of lessons whose duration depends on the level of preparation of students and their familiarity with the concepts of corporate finance and of financial institutions.
I module (12 h) – Risk management
The risk and its classification. The system of risks and its management and hedging.
II module (36 h) – The risks and the insurance
The estimation of premium. The insurance business (collecting of risk exposure, risk management, and lapse management). The underwriting risk and its sub-risks. The operative risk and the enterprise risk. The climate change risk. Solvency II.
III module (24 h) – Insurance for the Blue Economy
The insurance for the Blue Economy and the role of the Protection and Indemnity clubs. The reinsurance. InsurTech.
The course consists of a set of frontal lessons during which the professor will discuss the contents of the course and show some example of the management of the financial risk and of the insurance risk. The material (presentations and further references) can be downloaded by the Moodle platform.
- Porzio C., Previati D., Cocozza R., Miani S., Pisani R. (2011) Economia delle imprese assicurative, McGraw-Hill, Milano (selezione di capitoli).
- Starita M. G., Malafronte I. (2014) Capital Requirements, Disclosure, and Supervision in the European Insurance Industry. New Challenges towards Solvency II, Palgrave Macmillan, Basingstoke (selezione di capitoli).
- Other materials provided by the professor.
The examination consists of a written test and of a project work for the students who frequent the lessons whereas the examination consists of a written test and of an oral test for the students who do not frequent the lessons. The written test consists of five questions with open answer (the maximum score is 5 points for each question) and of an exercise (the maximum score is 5 points).The project work is related to the analysis of a firm’s system of risks. The judgment of the project work or of the oral test is expressed in thirtieths. The final score is the average (with the same weight) of the written test and of the project work/of the oral test.