Degree course: 
Corso di Second cycle degree in ECONOMICS, FINANCE AND BUSINESS LAW
Academic year when starting the degree: 
Academic year in which the course will be held: 
Second semester
Standard lectures hours: 

There are no prerequisites. However, an understanding of the contents of the course is facilitated by a good basic knowledge of the economics issues of financial intermediaries and the technical characteristics of the main insurance contracts, as well as the pricing of financial instruments (stocks, bonds and derivative financial instruments) and portfolio theory (mean-variance criterion, efficient frontier, Capital Asset Pricing Model).

Final Examination: 

When remote exams are scheduled, the final exam will be oral and carried out on Teams. The exam will be considered passed with a minimum mark of 18/30 on each of the two parts in which the course is divided; the final grade, expressed in thirtieths, will be given by the arithmetic average of the votes obtained in each of the two parties. The Commission reserves the right to award the praise in the face of exhaustive answers and demonstrating its high analytical skills and critical sense.
For the first part, the student must demonstrate that he/she has achieved the "expected learning outcomes" with reference to the "contents" of the first part of the course. In particular, the lecturer evaluates positively: the ability to organize knowledge discursively; the ability to critically reason on the study carried out and the depth of the analysis; the quality of the exposure; competence in the use of the specialized lexicon; effectiveness and argumentative linearity.
For the second part: the student will have to discuss the progress of the case studies, illustrating the analyses and calculations carried out. At the end of the course, the lecturer will assign students three case studies, related to the main topics covered in the lectures. They will be evaluated: the ability to contextualize the models and methodologies learned; the quality of exposure, including the property of the specialized lexicon; the depth of analysis and the ability to critical reasoning.
Students, for the purpose of taking the exam, can also take advantage of the intermediate tests provided by the second semester teaching calendar; the first intermediate test will focus on the first part of the course (Prof. Schena) and the second intermediate test will focus on the second part of the course (Prof.Redaelli). If one of the two intermediate tests is insufficient, the exam will be taken as a whole exam by the student in the normal exam sessions.

Voto Finale

"Economics and Finance of Insurance Companies".
The aim of the course is to acquire knowledge and skills on the issues of management of insurance companies and risk assessment related to the typical management areas.
The course is divided into two dedicated parts, one on management issues and, the other, on quantitative issues related to risk assessment.
In particular, the first part of the course (20 hours - Prof. Schena) aims to provide the knowledge on operational tools, the management problems determined by the strategic choices and constraints of the market context and regulatory and regulatory forecasts, the innovations introduced in the insurance field by the development of financial digitalization and the entry into the market of InsurTech and Big Tech companies.
The second part of the course (20 hours - Prof. Redaelli) aims to provide methodological knowledge and quantitative tools for Risk Management in an insurance company. Issues related to risk governance, the definition of the Risk Appetite Framework (RAF) and the Own Risk and Solvency Assessment (ORSA) will be discussed. These topics will be explored in depth, in particular, with regard to market, liquidity and counterparty risks.

At the end of the course the student will have acquired advanced technical terminology and will be able to argue analytically and critically the topics covered in the two parts of the course.
With reference to the first part of the course, the student:
- will be able to evaluate insurance products;
- will have understood and will be able to argue the fundamental and specific issues of the management of an insurance company and the repercussions in terms of profitability, risk and solvency;
- will be able to read and analyze the data and information of the financial statements and other company documents;
- will be able to interpret the evolution and innovations of the insurance sector.
With reference to the second part of the course the student:
- will have understood the structure of the solvency scheme and the risk control and management system in an insurance undertaking.
- will be able to measure the risk profile and capital requirement of an insurance company with regard to market, liquidity and counterparty risks.
- will be able to set up the calculation of risk tolerance in line with the regulation of the insurance sector.

The course is divided into two parts.

PART ONE - Prof. Schena:
1. Regulation of insurance activity (nods) [1 hour]
2. Production process and management profiles of insurance companies [2 hours]
3. Definition and management of insurance companies' reserves and investment policies [6 hours]
4. The solvency, cost-effectiveness and financial balance conditions of insurance management [6 hours]
5. Evolution of the structure of the insurance industry and business models: production and distribution innovations and the new competitive scenario determined by the digitalization of insurance activities and the entry into the market of new operators (InsurTech and Big Tech) [5 hours]

PART TWO - Prof. Redaelli:
6. The solvency scheme for insurance undertakings [3 hours]
7. The risk control and management system in an insurance company [3 hours]:
a. Risk governance in insurance companies.
b. The risk management process.
8. Market, liquidity and counterparty risks [8 hours]:
a. Definition and identification of risks.
b. Risk measuring instruments and models.
9. The risk profile [6 hours]:
a. Definition and calculation of the risk profile;
b. Definition and calculation of Risk Tolerance.


The mandatory texts are as follows:

PART ONE - Prof. Schena:
1. Antonella Cappiello, “L'attività assicurativa. Regole, gestione, business models”, Franco Angeli Editore, 2018. ( )
2. Antonella Cappiello, “The Digital (R)evolution of Insurance Business Models”, American Journal of Economics and Business Administration, 2020, Volume 1: 1.13. (available at the following link )
3. IVASS (available at the following link ):
a. “Relazione sull'attività svolta dall'Istituto nell'anno 2019”, Roma, 18 giugno 2020, selected parts indicated by the teacher;
b. “Considerazioni del Presidente”, Roma, 18 giugno 2020.
4. Slides and any other teaching support materials made available by the teacher on the e-learning page of the course.

PART TWO - Prof. Redaelli:
5. John Hull, Futures and Other Derivatives Options, Pearson Prentice Hall, latest edition available
6. EIOPA, Solvency II,
7. Handouts and articles indicated by the teacher and available on the e-learning page of the course.

No other teaching materials (handouts, summaries, etc.) are authorized by the teachers.


For the first part, the teaching methods are divided into lectures enriched by the analysis of practical cases and any operative presentations. Students will actively participate in teaching, discussing during the lessons the materials covered by the exam program. The lectures allow a direct interaction with the students, who, following the lecturer's explanation, can ask questions and in turn be solicited on specific cases and issues. Any testimonies carried out at the seminar meetings serve to create a contact with operational realities capable of offering technical and practical updates on the topics covered by the course, as well as food for thought for the solution of operational problems.
For the second part, the course is divided into:
a) Frontal illustrations of theoretical aspects. The lectures allow a direct interaction with the students, thus allowing to verify the understanding of the topics covered and clarify any doubts that arose during the teacher's explanations.
b) Practical applications / case studies. At the end of the theoretical presentation of each topic, business cases will be described in which the theoretical models illustrated apply. The goal is to explain to students how to set and solve concrete problems, using what has been studied from a theoretical point of view. The case studies will be carried out with the support of excel files preset by the teacher, in which students will learn how to organize data and information, set calculations parametrically and perform sensitivity analysis.

Office hours of lecturers are indicated on their website on the University website.