INSURANCE SOLUTIONS FOR RISK IN EMERGING MARKETS

SHE Level 5
SCQF Credit Points 15.00
ECTS Credit Points 7.50
Module Code MMN225371
Module Leader Madhusudan Acharyya
School School of Computing, Engineering and Built Environment
Subject GCU London
Trimesters
  • A (September start)
  • B (January start)
  • C (May start)

Summary of Content

The aim of this module is to assist students in gaining a clear and consolidated view of the risks in the emerging markets (e.g., countries in South and East Asia, Latin America and the Caribbean, Central and Eastern Europe, Africa, the Middle East (excluding Israel), Central Asia, and Turkey). The theories, practice and solutions of emerging market risks (e.g., microinsurance, Takaful, etc.) are included in the contents of the module. The pricing of indexed based microinsurance products is discussed. The demand and supply as well as the regulatory issues on controlling and facilitating the progress of insurance protection in the emerging markets are included. The module focuses on the role and potential contribution of the insurance sector to achieve United Nation's 2030 Sustainable Development goals.

Syllabus

-360 1. Growth and Profitability of Insurance in Emerging Markets 2. Theory, Principle and Practice of Microinsurance 3. Microinsurance products, pricing, impact and ethical propositions 4. Microinsurance regulations 5. Technological Innovation (InsurTech) and Microinsurance Development 6. Role of Microinsurance in Addressing UN Sustainable Development Goals 7. Insurance for Climate Risk 8. Principles, pricing and ethical values of Islamic (Takaful) insurance 9. Regulatory landscape of Islamic (Takaful) Insurance 10. Theories, principles and ethical standpoints of sustainable insurance 11. Economic perspectives of sustainable insurance 12. Insurance Industry's Contribution to Sustainable Development

Learning Outcomes

On successful completion of this module, students should be able to:-1. Evaluate the risk landscape of emerging markets [CW1]2. Evaluate the current insurance development and solutions in emerging market including availability and affordability of insurance (i.e., protection gap) [CW1, CW2]3. Evaluate the microinsurance initiatives and its potential benefits and costs in underinsured markets [CW1, CW2]4. Evaluate the insurability of risks in microinsurance markets [CW1, CW2]5. Evaluate the regulatory issues of microinsurance in emerging markets [CW1]6. Evaluate the issues, scope and pricing of index based insurance [CW1]7. Evaluate the scope and pricing of agricultural (e.g., crop and livestock) insurance [CW1]8. Evaluate the principles and practice of Takaful (Islamic) insurance [CW2]9. Analyse the structure, demand and supply of Takaful insurance [CW2]10. Evaluate the regulatory issues of Islamic insurance [CW2]

Teaching / Learning Strategy

The learning and teaching strategy uses a blended approach of lectures, tutorials, labs and directed learning supported by GCU Learn. Lectures will be used to highlight the key issues in a specific topic and point the way towards relevant journal articles and other appropriate literature. Students are expected to prepare for following week's lectures on each topic by engaging in literature searches, undertaking relevant reading and where necessary, attempt computational questions. Every student will receive a comprehensive study guide in the form of a module handbook. The lectures will adopt a variety of teaching styles including seminar style contributions such as group discussions to enhance intellectual, critical and analytical skills. For more applied topics, students will be required to attempt relevant problem or scenario based questions prior to the lectures, providing the basis for deepening professional skills, knowledge and understanding. The lab sections will provide the medium for gaining practical skills through the use of spreadsheets to explore the lecture themes in more detail. Spreadsheet solutions and solutions to quantitative questions will be available on GCULearn. All students will be directed to further reading to support the theoretical and practical contents of the module.

Indicative Reading

Dror, D. M., and Jambhekar, S. (2016) "Microinsurance Business Processes Handbook", Micro Insurance Academy Churchill, C. ed. (2006) "Protecting the poor - a microinsurance compendium", Volume 1, International Labour Office, CH-1211 Geneva, Churchill, C. and Matul, M. ed. (2012) "Protecting the poor - a microinsurance compendium", Volume 2, International Labour Office, CH-1211 Geneva, Fiala, O. (2019) "Natural Disasters and Individual Behaviour in Developing Countries: Risk, Trust and the Demand for Microinsurance", Springer NIC (2013) Promoting Microinsurance in Ghana - microinsurance as a means of insurance sector development, National Insurance Commission, Cantonments, Accra Leeuwen, M. H. D. V. (2016) "Mutual Insurance 1550-2015: From Guild Welfare and Friendly Societies to Contemporary Micro-Insurers", Palgrave Macmillan; 1st ed Ali, S. N. and Nisar, S. ed. (2016) "Takaful and Islamic Cooperative Finance: Challenges and Opportunities", Edward Elgar, Cheltenham, UK Balisacan, A., Chakravorty, U. and Ravago, M-L. ed. (2014) "Sustainable Economic Development: Resources, Environment, and Institutions", Academic Press Sabine L.B, VanderLinden and She2n M. Millie (2018) " The Insurance Technology Handbook for Investors, Entrepreneurs and FinTech Visionaries", John Wiley & Sons, West Sussex Churchill, C. and Matul, M. (2006, 2012) "Protecting the Poor - a microinsurance compendium" Vol. I and II, Brookings Institution Press, International Labour Organisation Newspapers and Magazines: Insurance Journal at <https://www.insurancejournal.com/> Business Insurance at <https://www.businessinsurance.com/> Best's Review at <http://www.ambest.com/review> Newsweek Global at http://www.thedailybeast.com/ <javascript:__doLinkPostBack('','target~~URL||args~~http%3A%2F%2Fwww.thedailybeast.com%2F||type~~','');> Claims at http://www.claimsmag.com/ <javascript:__doLinkPostBack('','target~~URL||args~~http%3A%2F%2Fwww.claimsmag.com%2F||type~~','');> The Journal [official magazine of the Chartered Insurance Institute] Insurance Advocate at http://cms.nationalunderwriter.com/cms/ia/website <javascript:__doLinkPostBack('','target~~URL||args~~http%3A%2F%2Fcms.nationalunderwriter.com%2Fcms%2Fia%2Fwebsite||type~~','');> Risk Management at http://www.rmmag.com/ <javascript:__doLinkPostBack('','target~~URL||args~~http%3A%2F%2Fwww.rmmag.com%2F||type~~','');> Financial Times at www.ft.com <http://www.ft.com> The Wall Street Journal at www.wsj.com <http://www.wsj.com> Journals: Journal of Insurance Regulation European Journal of Risk Regulation Geneva Papers on Risk and Insurance - Issues and Practice Asia-Pacific Journal of Risk and Insurance Journal of Risk Research Journal of Risk and Insurance Journal of Risk and Uncertainty Risk Management and Insurance Review Risk Analysis: An International Journal Journal of Insurance Issues Journal of Business Research Internet sites: https://www.microinsurancenetwork.org/ <http://www.islamic-banking.com/takaful_insurance.aspx> <http://www.unepfi.org/psi/> <http://www.microinsurancecentre.org/> <https://www.iaisweb.org/home> Geneva Association at www.genevaassociation.org <http://www.genevaassociation.org> Insurance Information Institute at www.iii.org <http://www.iii.org> Sustainable Insurance Forum at www.sustainableinsuranceforum.org/ <http://www.sustainableinsuranceforum.org/> Database for Research: A M Best Thomson Reuters DataStream and EIKON GlobalData

Transferrable Skills

This module will develop the following skills in a manner that encourages independent initiative and critical thinking: -360b7 Personal and interpersonal skills -360b7 Leadership and management skill b7 Oral and written communication skills b7 Data gathering, analysis and interpretation b7 Problem solving and critical thinking b7 Ability to work independently b7 Research skills in order to complete the courseworks As a part of the broader transferable skills students will be able to demonstrate: -360 1. Advanced knowledge in the subject area. 2. Advanced understanding on the ESG risks from a global perspective, their interconnections and innovative insurance solutions.

Module Structure

Activity Total Hours
Independent Learning (FT) 72.00
Seminars (FT) 12.00
Lectures (FT) 24.00
Assessment (FT) 40.00
Tutorials (FT) 2.00

Assessment Methods

Component Duration Weighting Threshold Description
Course Work 01 n/a 60.00 45% Analytical case study. 3,500 words Group submission for on-campus students and 2,000 words individual submission for distance learning students
Course Work 02 n/a 40.00 45% 2,000 words of written cretical essay [individual submission for both on-campus and distance learning students]