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  • 3.00 Credits

    Lemaire. Prerequisite(s): Two semesters of Statistics. This course covers models for insurer's losses, and applications of Markov chains. Poisson processes, including extensions such as non-homoeneous, compount, and mixed Poissonprocesses are studied in detail. The compound model is then used to establish the distribution of losses. An extensive section on Markov chains provides the theory to forecast future states of the process, as well as numerous applications of Markov chains to insurance, finance, and genetics. The course is abundantly illustrated by examples from the insurance and finance literature. While most of the students taking the course are future actuaries, other students interested in applications of statistics may discover in class many fascinating applications of stochastic processes and Markov chains.
  • 3.00 Credits

    Kartasheva. Prerequisite(s): Good understanding of capital markets, insurance markets, and basic statistics. This course is designed to apply and expand upon the theories and methodologies taught in finance to the complex and specific needs of managing financial risk in the insurance enterprise. The types of financial risks that today's insurance professionals faxe come from both the asset and liability sides of the balance sheet and thus reuqire a wide range of modeling tools. Concurrently, the tools used in the modeling of interest-rate risk, equity risk, and default risk have become incresingly important in an era of increasing convergence between the insurance industry and financial capital markets. This course will introduce several risk management models designed to allow insurance professional to mesure and manage each source of risk. We develop and critique theoretical models for each type of risk while strong emphasis is placed on the implementation and calibration of various modesl. Projects include the risk management and pricing of Variable Equity Indexed Annuities and Guaranteed Investment Contracts.
  • 3.00 Credits

    Mitchell. Prerequisite(s): None. Large U.S. employers devote up to 40% of payroll on non-wage benefits, and in other countries, the ratio is higher. What rationales justify such a substantial budget commitment to employee benefits How are benefit packages designed and how do they evolve to achieve multiple ends Course units cover aspects of life insurance, health and disability insurance, and deferred compensation plans along with the economic consequences of and regulatory environment shaping each. Executive compensation is also covered. This course is useful to anyone interested in health care, insurance and retirement planning, for either professional or personal reasons.
  • 3.00 Credits

    Smetters. Prerequisite(s): Some economics and econometrics desirable. This course presents and evaluates economic rationales for social insurance programs in the developed and developing world. We explore how social insurance programs are designed and implemented in theory and practice, and examine what their economic effects are on key players' behaviors. Topics include systems protecting against umemployment, disability, poverty, old age, and medical care expenses. We examine the relative roles of private versus governmentally-provided benefit programs, focusing on financing and benefit provision. Special attention is devoted to recent and ongoing real-world experiments with privatization.
  • 3.00 Credits

    Staff. Prerequisite(s): INSR 825, preferred but not required. This course deals with economic and financial issues in property-liability insurance. The focus is on the economics of the property-liability insurance industry and on economic and financial aspects of property-liability insurance company management. The course begins by studying the structure of the property-liability insurance industry and its role in the economy. Among the key issues are profit cycles, insurance stock performance, and price and availability problems. The course then moves to a micro level, analyzing the economics of insurance company operations. The role of underwriting is discussed in the context of economic models of asymmetric information and adverse selection. The efficiency of alternative marketing technologies is considered. A major course segment is devoted to financial models for pricing property-liability contracts and their implications for company management and market behavior. A final major course segment deals with the impact on insurance markets of price and solvency regulation.
  • 3.00 Credits

    Nini and Smetters. Prerequisite(s): None. This doctoral course will provide tools and methods to test the models and measure the parameters of interest in the microeconomics of decision-making under uncertainty; provides an understanding of the settings in which these concepts operate; and evaluates conditions under which programs designed to manage risk can have unabticipated or undesirable consequences. Students will have two main goals: To develop cutting-edge tools and methods to estimate or measure key parameters and phenomen central to the study of insurance, risk, and risk management -To develop an understanding of the design, structure, and impact of plans and policies designed to manage risk.
  • 3.00 Credits

    Kartasheva. Prerequisite(s): Economics (Basic). This course deals with the economic theory of supply, demand, and equilibrium in insurance markets. The course will review decision models under conditions of risk, use these to address problems of optimal insurance, moral hazard and adverse selection, classification, contract enforcement and fraud. The course also looks at instability in insurance markets.
  • 3.00 Credits

    Distribution Course in Society. Class of 2009 & prior only. Staff. A survey of theoretical and conceptual approaches to the study of International Relations as they are employed by analysts and practitioners in the field.
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