MODULE SPECIFICATION UNDERGRADUATE PROGRAMMES KEY FACTS Module name General Insurance Module code AS3303 School Cass Business School Department or equivalent UG Programme UK credits 15 ECTS 7.5 Level 6 Delivery location (partnership programmes only) MODULE SUMMARY Module outline and aims There are three main rationales for this module. Firstly, it will introduce you to the area of general insurance and in particular the risks that face general insurance companies and how these are managed. By managing these risks companies are able to generate sufficient expected profit for the risks taken. Studying this module will thus allow you to find out more about this area of the profession and whether it is an area that you would like to pursue on graduation. Secondly, by enabling you to see the basic workings of the industry it will increase your employability in this area. Finally, the material is taken from parts of the Profession s syllabus for specialist technical subjects ST7and ST8 and hence will help you when you come to study these subjects with the Profession. This module aims to provide: - Information about why the general insurance industry emerged and the benefits of insurance to society at large; - Information about the roles of the actuary in the general insurance industry and how they identify and manage the risks that the insurance industry faces; - An introduction to the types of products that the insurance industry provides and why this market is constantly evolving; - An introduction to the techniques that are used to determine the premiums charged for cover and how these are determined by individual risk characteristics; - An introduction on how companies reserve for future claims, the effect this has on apparent profits and on-going solvency; - A discussion on the reinsurance industry, why this has evolved and its role in the management of risk; - An introduction in the construction of general insurance accounts and how to analyse
key figures within the accounts to determine the strength of particular companies. Content outline - Origins of the general insurance industry and the roles of the actuary in general insurance - Types of insurance products that are available in the market place and why these products exist - A description of the main providers of insurance in the market place. - Premium calculation methods (both theoretical and market influenced) - A selection of reserving methodologies and how to determine the right method to use based on the circumstances - An introduction to reinsurance products and their use in managing risk - How to construct general insurance accounts and interpret the data WHAT WILL I BE EXPECTED TO ACHIEVE? On successful completion of this module, you will be expected to be able to: Knowledge and understanding: - Understand how the general insurance industry generates profits by managing risk - Understand how homogeneous portfolios are created using rating factors - Understand how reinsurance is used to balance the risk/reward faced by a general insurance company Skills: - Apply statistical techniques to generate premiums and reserves - Apply the theory of risk management to a variety of situations - Create suitable accounts for companies when given information about the business Values and attitudes: - Appreciate the role of general insurance in society/the economy - Understand the role of the actuary in determining the apparent profit and solvency margin and hence the ethical issues that arise from this position
HOW WILL I LEARN? There will be a weekly three hour lecture where the theory will be discussed with examples to illustrate the points. Students will be expected to read articles on issues in general insurance from the financial press. Teaching pattern: Teaching component Teaching type Contact Selfdirected study Placement Lectures Lecture 30 120 0 150 TOTALS: 30 120 0 150 WHAT TYPES OF ASSESSMENT AND FEEDBACK CAN I EXPECT? Assessments Total student learning There will be two individual pieces of coursework, each worth 10% of the total mark, and a final exam that will be worth 80%. Assessment pattern: Assessment component Coursework 1 Coursework 2 Exam Assessment criteria Assessment type assignment, including essay assignment, including essay Exam Weighting Minimum qualifying mark Pass/Fail? 10 0 N/A 10 0 N/A 80 0 N/A Assessment Criteria are descriptions of the skills, knowledge or attributes students need to demonstrate in order to complete an assessment successfully and Grade-Related Criteria are descriptions of the skills, knowledge or attributes students need to demonstrate to achieve a certain grade or mark in an assessment. Assessment Criteria and Grade-Related Criteria for module assessments will be made available to students
prior to an assessment taking place. More information will be available from the module leader. Feedback on assessment Following an assessment, students will be given their marks and feedback in line with the Assessment Regulations and Policy. Coursework will be submitted online using Moodle s Assignment tool. Individual feedback will be returned within 3 weeks. A general feedback on all coursework received will also be uploaded to Moodle. Assessment Regulations The Pass mark for the module is 40%. Any minimum qualifying marks for specific assessments are listed in the table above. The weighting of the different components can also be found above. The Programme Specification contains information on what happens if you fail an assessment component or the module. INDICATIVE READING LIST The Actuarial Practice of General Insurance, Hart, David G; Buchanan, Robert A; Howe, Bruce A (5th edition), ISBN 0 858130556. Version: 2.0 Version date: July 2013 For use from: 2013-14
Appendix: see http://www.hesa.ac.uk/content/view/1805/296/ for the full list of JACS codes and descriptions CODES HESA Code Description Price Group 24 Mathematics C JACS Code Description Percentage (%) N323 The application of statistical concepts within the financial industry. 100