Learning objectives D1. Knowledge and understanding By the end of the course, the student will be able to demonstrate knowledge of and describe the main concepts and models of insurance economics. Additionally, the student will be able to explain and comment on some of the most relevant stylized facts related to the insurance market. D2. Applying knowledge and understanding At the end of the course, the student will be able to apply their knowledge to analyze the behavior of insured individuals and insurance companies. D3. Independent judgment By the end of the course, the student will be able to identify situations and typical problems in the insurance market and apply the appropriate concepts learned to address them. D4. Communication skills At the end of the course, the student will be able to communicate appropriately on topics related to insurance economics, using accurate terminology and clear exposition. D5. Learning skills By the end of the course, the student will be able to consult textbooks and specialized articles, having a general understanding of the context, topics, and terminology typical of insurance economics.

Microeconomics: consumer choice; producer cost functions; economies of scale; competitive market; oligopoly and mark-up. Business economics: costs and revenues; income statement and balance sheet; concept of economic equilibrium. Basic notions of probability theory: random variables, expected value, variance, correlation, convergence, distributions, and conditional expectations. Basic notions of statistics: simple and multivariate linear models.

The economic functions of Insurance and the importance of the insurance sector in the economy Risk: definition and measurement. Risk aversion. Certainty equivalent and fair premium. The Demand for Insurance: trade-off between contingent Goods and expected utility maximization. Asymmetric information. The Supply of insurance: the insurance company's accounts. The economic equilibrium of the insurance company.

Peter Zweifel, Roland Eisen, David L. Eckles 2021. "Insurance Economics”. II Edition. Springer Texts in Business and Economics, Springer. Capitoli: 1,2,3,6,7,8

The economic functions of insurance. Economic risk and its management. The economic importance of the insurance sector. Determinants of insurance choices: wealth, income, price. Risk: definition and measurement. Risk aversion. Certainty equivalent and fair premium. Willingness to pay for certainty and loadings. The demand for insurance: expected utility maximization. Insurance demand in the absence of fair premiums. Insurance demand in the presence of multiple risks. Insurance markets and asymmetric information before and after contract signing: moral hazard and adverse selection. The supply of insurance: insurance companies and their technology. Value creation in the insurance business. The financial accounts of insurance companies. Distribution channels and economies of scale. The economic equilibrium of the insurance company: underwriting policies and risk selection.

Traditional in-person lectures. Examples of applications will be presented in class, with the possibility of lab sessions and/or homework exercises.

Additional teaching materials (slides, articles) will be made available in the course’s Moodle2 area.

Student learning is assessed through an oral exam consisting of: - theoretical questions aimed at verifying the student’s ability to discuss specific topics from the syllabus in a structured manner; - applied questions (such as solving exercises or interpreting the results of statistical procedures) aimed at assessing the student’s ability to use the proposed statistical methods and interpret the outcomes. The exam typically lasts between 30 minutes and 1.5 hours, depending on the depth of knowledge to be assessed. The exam is passed with a minimum grade of 18/30, provided the student demonstrates sufficient understanding of the required topics along with an acceptable level of clarity in exposition.