Economics of Insurance
Topic outline
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This academic course has been introduced as part of the second-year Master’s program in Business Economics within the Department of Economics. It covers key topics in the field of insurance, providing students with a solid foundation to understand the insurance industry, including its regulatory, technical, and legal aspects, as well as relevant theoretical frameworks.
The course integrates the economics of insurance and reinsurance from both economic and financial perspectives. It emphasizes economic and financial analysis while highlighting the crucial role of insurance in protecting individuals, supporting industrial enterprises and productive institutions, and fostering investment. Additionally, it explores how insurance companies enhance their financial positions and achieve profitability through efficient management of premiums and claims.
Academic year 2025-2026
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Professor: DR Ikram Benazza (Lecturer and Tutorial Supervisor )
Faculty: Faculty of Economic, Commercial and Management Sciences
Department: Department of Economic Sciences
Target Educational Level: Second Year Master’s Program
Semester: Third
Course Title: Economics of Insurance
Course Type: Horizontal Unit
Credits: 6
Coefficient: 2
Evaluation: 60% Exam, 40% Continuous Assessment
Total Hours for the Semester: 15 weeks
Weekly Hours: 3 hours per week (Lecture: 1 hour 30 minutes, Tutorials : 1 hour 30 minutes)
Contact Email: benazza.ikram@yahoo.fr, ikram.benazza@univ-tlemcen.dz
Instructor Availability: Economic Sciences Department ; Teachers Lounge, Thursday from 10:30 AM to 11:00 AM
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· 60% Final Exam: This will involve a comprehensive evaluation of the content covered throughout the course, testing the student's ability to understand and apply the theoretical and practical concepts related to the economics of insurance.
· 40% Continuous Assessment: This includes a variety of tasks and activities throughout the course, such as assignments, participation in guided work, and other activities designed to assess the student's understanding of the material progressively.
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This course aims to:
- Assist students in understanding the various concepts and foundations of commercial insurance, reinsurance, life insurance, and methods of managing these forms.
- Familiarize students with the theories of risk, its characteristics, and causes in commercial insurance.
- Help students understand the economic and social role of the insurance sector.
- Introduce the basics of commercial reinsurance and its types.
- Teach risk evaluation methods and how to design suitable insurance policies.
- Explore the relationship between insurance and risk management in companies.
- Educate students on the basics of life insurance and its types.
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- Introduction to Economics
- Financial Institutions
- Risk Management
- Insurance Law
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- What are the key elements of an insurance contract?
- What is the difference between mandatory and optional insurance?
- Define financial institutions.
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It summarizes the key topics related to commercial insurance, including its origins, development stages, all its elements and classifications, along with an explanation of the various methods of risk coverage.
The book is divided into ten chapters
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By the end of the course, students are expected to:
- Knowledge and Recall: Recognize various definitions related to commercial insurance.
- Comprehension and Understanding: Extract the active elements in the insurance and reinsurance processes.
- Analysis and Deduction: Identify the main foundations upon which commercial insurance is built.
- Application: Manage, evaluate, and measure insurable risks, as well as understand the principles and methods for determining premiums and coverage amounts.
- Competence: Differentiate between the causes of risk and the contributing factors.
- Classification: Classify types and categories of commercial insurance, along with identifying their application areas
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All learning units are supported with exercises that enhance the ability to better understand the concepts -
1. Concept and History of Insurance
- Definition of Insurance
- Historical Evolution
- Early Forms of Insurance
2. Insurance Theories and Types
- Major Theories in Insurance
- Classification of Insurance
- Role of Insurance in Economy
3. Characteristics and Pillars of Insurance
- Essential Elements of Insurance
- Risk Transfer Mechanism
- Legal Framework of Insurance
4. Legal Principles of Insurance
- Principle of Indemnity
- Utmost Good Faith
- Insurable Interest & Subrogation
5. Economic and Social Importance of Insurance
- Contribution to Economic Growth
- Social Protection Role
- Financial Stability
6. Insurance Institutions and Social Security
- Role of Insurance Companies
- Government Regulations
- Social Security Systems
7. Insurable Risks: Concept, Types, and Requirements
- Definition of Insurable Risks
- Categories of Risks
- Criteria for Insurability
8. Risk Management: Evaluation, Measurement, and Mitigation
- Risk Assessment Techniques
- Mitigation Strategies
- Claims Management
9. Pricing of Insurance Services: Premiums and Amounts
- Actuarial Science in Insurance
- Determination of Premiums
- Underwriting Process
10. Life Insurance and Reinsurance
- Fundamentals of Life Insurance
- Importance of Reinsurance
- Types of Reinsurance
11. Taxation of Insurance Companies
- Tax Policies in Insurance
- Impact of Taxation on Premiums
- Compliance and Regulations
This mind map provides a structured representation of key topics in Insurance Economics, helping students grasp the fundamental concepts and relationships between different aspects of the subject.
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- Mohammed Oraikat Harbi & Saeed Juma Aqel (2008). Insurance and Risk Management: Theory and Practice. Wael Publishing House, Amman.
- Ibrahim. Ali Ibrahim Abdel Rabbo (2003). Insurance and Its Mathematics. University Publishing and Printing House, Alexandria
1. عيد احمد أبو بكر ، إسماعيل السيفو،2009، إدارة الخطر و التأمين،دار اليازوري العمية للنشر و التوزيع ، الأردن .
2. أسامة عزمي سلام ، شقيري نوري موسى، 2007 ،إدارة الخطر و التأمين،دار حامد للنشر و التوزيع، الأردن، الطبعة الأولى.
