PFZAJ Reinsurance

Faculty of Economics and Administration
Autumn 2008
Extent and Intensity
2/1. 4 credit(s). Type of Completion: zk (examination).
Teacher(s)
Ing. Svatopluk Nečas, Ph.D. (lecturer)
Ing. Svatopluk Nečas, Ph.D. (seminar tutor)
Guaranteed by
prof. Ing. Viktória Čejková, Ph.D.
Department of Finance – Faculty of Economics and Administration
Contact Person: Iva Havlíčková
Timetable of Seminar Groups
PFZAJ/1: No timetable has been entered into IS. S. Nečas
Prerequisites (in Czech)
PFPOJI Insurance Industry
Course Enrolment Limitations
The course is also offered to the students of the fields other than those the course is directly associated with.
The capacity limit for the course is 23 student(s).
Current registration and enrolment status: enrolled: 0/23, only registered: 0/23, only registered with preference (fields directly associated with the programme): 0/23
fields of study / plans the course is directly associated with
Course objectives
Main objectives can be summarized as follows:
- to enlarge students' knowledge about reinsurance as a fundamental element od insurance system;
- to delineate relationships between the insurance and reinsurance, furthermore reinsurance relationships and legal basis of reinsurance;
- to understand the function of reinsurance and problems of retention of an insurance company;
- to understand classification of reinsurance using various criteria;
- to characterize proportional and non-proportional reinsurance and their individual components, including the determination of reinsurance premium;
- to understand the structure and the formation of reinsurance program, as well as alternative risks transfers;
- to understand co-insurance as a method of horizontal division of risks, including its principles.
Syllabus
  • Theme plan of lectures
  • 1. Connection between insurance and reinsurance. History of reinsurance
  • 2. Reinsurance as method of vertical division of risk. Functions and tasks of reinsurance. Analysis of insurance stocks of insurance entering reinsurance. Retention and ways of its determination.
  • 3. Legal relations in reinsurance. Facultative reinsurance. obligatory reinsurance. Conventions of negotiating reinsurance and basic elements of reinsurance contracts.
  • 4. Types and forms of reinsurance.
  • 5. Proportional reinsurance. Quota share and surplus reinsurance. Other types of proportional reinsurance. Principles of determining reinsurance premium for proportional reinsurance.
  • 6. Non-proportional reinsurance. Excess of loss. Stop Loss. Other types of non-proportional reinsurance. Principles of determining reinsurance premium for non-proportional reinsurance.
  • 7. Reinsurance program for commercial insurance companies, its formation and importance for economy.
  • 8. Alternative risk transfers. Finite reinsurance and its basic principles.
  • 9. Basic principles and types of retrospective types of contracts. Basic principles and types of prospective contracts.
  • 10. Reinsurance market in international context. Function of reinsurance broker and his position within reinsurance.
  • 11. Co-insurance as method of horizontal division of risk. Principles of co-insurance. The role of leading insurer.
  • 12. Pools of reinsurance and co-insurance.
  • 13. Current issues and problems in field of reinsurance and co-insurance.
  • Theme plan of seminars (scheduled by weeks):
  • 1. Introductory seminar - organization of seminars, conditions of assessment and requirements for completion of course, assignment of seminar papers
  • 2. Most significant risks and reinsurance - Floods and hurricanes and their insurability I. Floods - their impact on reinsurance, hurricanes - their impact on reinsurance, possibility of predictability and insurability of these risks;
  • 3. Most significant risks and reinsurance - Floods and hurricanes and their insurability II. Floods - their impact on reinsurance, hurricanes - their impact on reinsurance, possibility of predictability and insurability of these risks;
  • 4. Most significant risks and reinsurance - Earthquake and tsunami I. Earthquake and tsunami - their impact on reinsurance, possibility of predictability and insurability of these risks;
  • 5. Most significant risks and reinsurance - Earthquake and tsunami II. Earthquake and tsunami - their impact on reinsurance, possibility of predictability and insurability of these risks;
  • 6. Most significant risks and reinsurance - Nuclear risks in property insurance and limit of their insurability I. Nuclear risk - restriction and possibilities of insurability, implementation of nuclear risks and their impact on reinsurance, nuclear risks and so-called pools.
  • 7. Most significant risks and reinsurance - Nuclear risks in property insurance and limit of their insurability II. In-term test No. 1. Nuclear risk - restriction and possibilities of insurability, implementation of nuclear risks and their impact on reinsurance, nuclear risks and so-called pools, in-term test No. 1.
  • 8. Analysis of reinsurance contract in proportional reinsurance I. General conditions, special conditions, contract clauses and their analysis;
  • 9. Analysis of reinsurance contract in proportional reinsurance II. General conditions, special conditions, contract clauses and their analysis;
  • 10. Analysis of reinsurance contract in non-proportional reinsurance I. General conditions, special conditions, contract clauses and their analysis;
  • 11. Analysis of reinsurance contract in non-proportional reinsurance II. General conditions, special conditions, contract clauses and their analysis;
  • 12. Rating evaluation and its importance in reinsurance. Rating in reinsurance industry, impact of rating evaluation on functioning of reinsurance companies, examples and analysis of specific rating evaluation;
  • 13. In-term test No. 2 (part of final exam) - debate about test assignment (to eliminate any confusion), test, seminar about in-term test.
Literature
  • CIPRA, Tomáš. Zajištění a přenos rizik v pojišťovnictví. 1. vyd. Praha: Grada, 2004, 260 s. ISBN 8024708388. info
  • Buchová, J. Zaistenie. 1. vyd. Hronský Beňadik: NETRI, 2004. 152 s. ISBN 80-968904-7-6
  • Bellerose, R. P. Reinsurance for the Beginner (3rd Edition). London : Witherby & Co., 1987
  • Zákon č. 409/2004 Sb., o pojišťovnictví
  • Zákon č. 37/2004 Sb., o pojistné smlouvě
Assessment methods
Type of teaching: lectures, seminars Requirements for completion of the course:
a) processing, submission (in written and electronic form) and the presentation of a seminar project at given issue (using PowerPoint) with classification as passed. The classification of seminar project passed or failed. In the case of classification failed a student will not be admitted to the exam. In the case of classification passed may the seminar work be reflected in the final classification up to 5 % (1 point), according to an assessment of the directive of the seminar;
b) successful completion (passing) of the first test of seminars and successful completion (passing) of the second test of the seminars. Condition (points assessment) for the successful completion (passing) of this test is not strictly defined, because the test is a part of the final exam. The condition is thus set for an overall assessment of the tests, not for its components. This test of seminars consists at most of 10 subquestions and can be assessed up to 10 points. Control tests of the seminars will be written in the 7th and 13th week of the semester. If a student can not physically complete the test (the apology will judge the directive of the seminar), he/she writes a test on one of the other seminars (in the case of the first test), respectively in the first two weeks of the examination period (in the case of the second test). The classification of the control tests of the seminars will be different; first test will be evaluated passed or failed (required min. 60%, if a student failed the assessment, he/she will be not allowed to the exam), the second control test is part of the exam and its classification will be the same as the classification of test of lectures and literature;
c) participation at least on 10 seminars.
The final exam and final classification
The exam has a written form. Content of the final exam is a matter of the lectures and literature. Condition of the minimum number of points for successful completion of a test of lectures and literature is not strictly defined.
The final mark is made up of: the result of control test No. 2 (maximum 10 points) and the result of the test of lectures and literature (maximum 10 points), eventually also classification of the seminar work (a bonus of up to 1 point).
Rating scale:
A: 90 - 100% (18 - 20, respectively 21 points),
B: 85 - 89% (17 - 17.9 points),
C: 75 - 84% (15 - 16.9 points),
D: 70 - 74% (14 - 14.9 points),
E: 60 - 69% (12 - 13.9 points),
F: less than 60% (less than 12 points).
Student who will have after writing the test No. 2 and the test of lectures and literature less than 12 points, will repeat less marked test. The examination date for resit control test No. 2 will be listed through IS MU and will take place during the examination period. Students log on the resit test. For the exam test the same rules are applied. A resit test (of lectures and literature, respectively control test No. 2) can be written by a student only twice if the student is allowed to qualify for the 2nd resit term (based on his previous study results). If not, he/she can repeat the test only once. Repetition of the test are added together and it does not apply that a student may twice (or once - see previous sentence) repeat each test.
Warning: Any frauds or attempted frauds during the exam (such as the use of „cheat sheets“ or other illicit materials, copying, allowing copying, obtaining the tests, etc.) or activities endangering the objectivity of the exam will be classified as a nonobservance of requests for course completion and will be assessed by the teacher in IS MU as "F".
Language of instruction
Czech
Follow-Up Courses
Further Comments
Study Materials
The course is taught annually.
The course is also listed under the following terms Autumn 2005, Autumn 2006, Autumn 2007.
  • Enrolment Statistics (recent)
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