Insurance Economics


Prof. Dr. An Chen


Dr. Peter Hieber


First lecture on Wednesday, 19th April 2017.

Lectures/exercises take place on:
Monday, 10:15-11:45 (H11)
Wednesday, 14:15-15:45 (H20)


The lecture will be held in English.

German title of this lecture: "Versicherungsökonomik"

Further information on the lecture and all documents are available on moodle.

Course Content

This course provides an introduction to insurance economics. It is aimed at students majoring in "Actuarial Science" - students with other majors are of course also welcome. The course language is English. Its German title is "Versicherungsökonomik".

Topics addressed include:

  • Choice under uncertainty (expected utility theory and rational decision under risk, measure for risk aversion, mean variance preferences)
  • Insurance demands by households (base model, insurance demand without fair premium, Pareto-optimal insurance contract)
  • Insurance demand by firms (risk management and diversification, risk management forward, future and options, corporate demand for insurance)
  • Insurance supply (traditional premium calculation, financial modelling of insurance pricing, economies of scope, economies of scale)
  • Microeconomic analysis (moral hazard, adverse selection)
  • Insurance regulation


The lecture is designed for students of "Economathematics", "Mathematics", "Economics" or "Finance" that are at an advanced stage of their studies.

DAV Exam

Within this lecture it is possible to achieve the certificate of the german actuarial society (Deutsche Aktuar Vereinigung DAV) in Versicherungswirtschaftslehre. This certificate is a basic requirement for becoming an actuary in Germany. Requirement for the certificate is passing the final exam.

Information on registration for the DAV exam are given in Moodle.


The exam will be open, i.e. you can also take the second without taking the first exam. Only the first exam may lead to a DAV certificate. There are no requirements ("Vorleistungen") to attend the exams. 

  • First exam: tba.
  • Repetition exam: tba.

Authorized auxiliaries: pens, ruler and a non-programmable and non-graphic calculator.


The main textbook

  • Zweifel, P. and R. Eisen (2012), Insurance Economics, Springer

Further reading

  • Farny, D. (2006), Versicherungsbetriebslehre, 4. u. überarbeitete Auflage, Karlsruhe: Verlag Versicherungswirtschaft.
  • Felderer, B. und S. Homburg (2005), Makroökonomik und neue Makroökonomik , 9. Auflage, Berlin: Springer.
  • Schulenburg, J.-M. (2005), Versicherungsökonomik, ein Leitfaden für Studium und Praxis, Karlsruhe: Verlag Versicherungswirtschaft.
  • Vaughan, J. E. und T. Vaughan (2003), Fundamentals of Risk and Insurance, 9. Edition, Wileys & Sons.
  • Zweifel, P. und R. Eisen (2003), Versicherungsökonomie, 2. u. verbesserte Auflage - Berlin et al: Springer.