Module Handbook

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Module WIW-FE-INS-M-7

Insurance Economics (M, 4.5 LP)

Module Identification

Module Number Module Name CP (Effort)
WIW-FE-INS-M-7 Insurance Economics 4.5 CP (135 h)


CP, Effort 4.5 CP = 135 h
Position of the semester 1 Sem. in SuSe
Level [7] Master (Advanced)
Language [EN] English
Module Manager
Area of study [WIW-FE] Macroeconomics
Reference course of study [WIW-88.21-SG#2009] M.Sc. Business Studies (2009) [2009]
Livecycle-State [NORM] Active


Type/SWS Course Number Title Choice in
Presence-Time /
SL SL is
required for exa.
PL CP Sem.
Insurance Economics
P 45 h 90 h - - PL1 4.5 SuSe
  • About [WIW-FE-INS-K-7]: Title: "Insurance Economics"; Presence-Time: 45 h; Self-Study: 90 h

Examination achievement PL1

  • Form of examination: written or oral examination
  • Examination Frequency: each semester

Evaluation of grades

The grade of the module examination is also the module grade.

Oral exam (30 minutes) or written exam at the end of semester.


The main objective of this module is to familiarize students with the modelling of insurance demand and supply.


  • Foundations of expected utility theory
  • Co-Insurance and deductible insurance
  • Mossin’s theorem
  • Insurance principles
  • Adverse selection, moral hazard
  • Asymmetric information

Competencies / intended learning achievements

  • Understand how decisions makers choose from a given set of lotteries
  • Compute optimal levels of co-insurance and deductibles
  • Understand and compare insurance principles
  • Model insurance decisions under asymmetric information


  • Rees, Ray and Wambach, Achim: The Microeconomicsof Insurance. Foundations and Trends in Microeconomics Now Publishers Inc. Delft, 2008
  • Dionne, Georges: Handbook of Insurance, Springer 2013
  • Mas-Colell, Andreu; Whinston, Michael D. and Green, Jerry: Microeconomic Theory. Oxford University Press 1995
  • Gravelle, Hugh and Rees, Ray. Microeconomics. 2004

Requirements for attendance of the module (informal)


Requirements for attendance of the module (formal)


References to Module / Module Number [WIW-FE-INS-M-7]

Course of Study Section Choice/Obligation
[MAT-88.B84-SG] M.Sc. Actuarial and Financial Mathematics [Core Modules (non specialised)] Financial Economics [P] Compulsory
Module-Pool Name
[GS-CVT-BS-2022-E-MPOOL-6] Catalog Electives Business Studies and Economics 2022
[WIW-ET-MPOOL-7] Field of Specialization: Economic Theory
[WIW-FE-MPOOL-7] Field of Specialization: Financial Economics