Institute for Risk Management and Insurance

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Insurance Economics

***Please be sure to register for the event using the registration form in order to be able to participate in the online formats without obstacles and to receive information on updates.***

Lecture: Dr. Lu Li
Tutorial: Tobias Huber

Course Description

This course deals with the core concepts of the theory of insurance demand. After a review of the essentials of decision theory, the optimal design of insurance products is addressed from an information economics point of view. Optimal risk sharing in a complete information setting is discussed as the benchmark case. The main emphasis is placed on principal agent problems due to superior knowledge of the insured. In particular, the class covers adverse selection and moral hazard which heavily affect almost any real-life insurance market. Implications for product design as well as the interaction between insurance and other markets are analyzed.

Course Format (Update: April, 8th)

Insurance Economics will be offered online in SS2020 due to the outbreak of COVID-19. Lectures and tutorials will be available as videos via LMUcast. Links to the videos will be announced by email to registered participants and in LSF during the semester. Participants should complete the lecture and tutorial videos by the respective recommended completion dates (see the LSF for details).

Further Information

  • LSF (Please visit the LSF for important ongoing updates)
  • Syllabus (Last Update: 16 April 2020)
  • We ask you to register via this form in order to be able to participate in the online format without obstacles (Without your registration, we may be unable to send you important class materials including access to online sessions).