Faculty of Business: Finance and Economics
Credit points: 6 cp

Subject level: Undergraduate

Result Type: Grade and marks

Requisite(s): (25300 Fundamentals of Business Finance AND (26134 Business Statistics OR 26133 Business Information Analysis) AND 25115 Economics for Business)
These requisites may not apply to students in certain courses.
There are also course requisites for this subject. See access conditions.

Handbook description

This subject introduces students to the theory of risk and examines the history and evolution of insurance together with its contemporary functioning. Students are exposed to the study of insurance as a commercial, economic and social institution. The subject also deals with the principal statutory controls governing the transaction of insurance business in Australia.

Subject objectives/outcomes

On successful completion of this subject, students should be able to:

1. Understand the influence of uncertainty or risk in insurance
2. Examine the history and evolution of insurance together with its contemporary functioning
3. Understand the study of insurance as a commercial, economic and social institution
4. Understand the principal statutory controls governing the transaction of insurance business in Australia.

Contribution to graduate profile

This subject serves as a foundation course to subsequent subjects in insurance.

Teaching and learning strategies

This subject uses case problems and practical assignments to reinforce the concepts covered in lectures.

Content

• Introduction to concepts of risk and insurance
• Insurance in Australia - general and life insurance industries, current trends and issues
• Introduction to risk management, underwriting and legal principles of insurance
• An outline of current regulation of the Autralian insurance process
• An introduction to life insurance and the regulation of the Australian life insurance industry.

Assessment

Class Tests (Individual)	50%
Class tests assure objectives 1 and 2. They assess students' understanding of the role of insurance in risk management and the evolution of its functions over time.
Final Examination (Individual)	50%
Final examination assures objectives 1-4. Students are tested for their understanding of the functions of insurance and their knowledge of principal statutory controls of the Australian insurance industry.

Tests and examination will be conducted under University examination conditions, and hence thoroughly address concerns regarding secure assessment.

Recommended text(s)

Comprehensive readings distributed by lecturer.

Indicative references

Harrington, E. and Niehaus, G. (2004) Risk Management and Insurance, 2nd ed. Irwin/McGraw-Hill, Boston.

Redja, G. (2004) Principles of Risk Management and Insurance, 9th ed. Addison-Wesley, Boston.

Sutton K. (1999) Insurance Law in Australia, 3rd ed. LBC Information Services, Sydney.