ALTERNATIVE RISK TRANSFER AND SECURITISATION IN INSURANCE

TBF447

Course Code: TBF447
Semester: -
Theory+Practice: 3 + 0
ECTS: 5

Course Type

Elective Course

Course Level

Bachelor's Degree

Year of Study

Semester

ECTS

Name of Lecturer(s)

Learning Outcomes

At the end of this course, the students;

Analyze the key participants and market dynamics of alternative risk transfer markets and evaluate the differences between these markets and traditional risk transfer methods in the insurance sector.
Become knowledgeable about captive insurance companies.
Understand the practical functioning of catastrophic bonds and parametric insurance.
Examine the applications of weather derivatives and catastrophic swaps in the insurance market.

Mode of Delivery

Face to face

Prerequisites

Recommended Optional Programme Components

None

Course Description

This course will cover the classification of alternative risk transfer (ART) markets, the risk carriers in these markets, and ART methods. The course will also examine and discuss topics such as capital market transactions, securitization, catastrophic bonds, swaps, and weather derivatives.

Course Contents

WEEK	TOPICS
1^st Week	Insurance markets and risk management in Turkiye and in the world
2^nd Week	Traditional and alternative risk management methods
3^rd Week	Alternative risk transfer (ART) systems
4^th Week	ART markets and classifications
5^th Week	Risk carriers in ART markets
6^th Week	ART methods
7^th Week	Captives and their application
8^th Week	Midterm exam
9^th Week	Capital market transactions and securitization
10^th Week	The concept of catastrophic risk
11^th Week	Catastrophic bonds and their applications
12^th Week	Parametric insurance and its applications
13^th Week	Catastrophic swaps and their applications
14^th Week	Weather derivatives and their applications

Recommended or Required Reading

Kaya, H. C. (2021). Sigortacılıkta Uygulanan Alternatif Risk Transfer Sistemleri Üzerine Bir İnceleme (Doctoral dissertation).

Sarıoğuz, S. (2007). Sigorta sektöründe risk yönetimi, alternatif risk transfer yöntemleri, şirketler için bir öneri: Hava durumu opsiyonları. Yayınlanmamış Yüksek Lisans Tezi, İstanbul Üniversitesi SBE.

Öztürk, A. (2019). Alternatif Finansman aracı Olarak Afet Tahvilleri (Doctoral dissertation, Marmara Universitesi).

Dask Annual reports.

Reasürör Dergisi No 59.

Planned Learning Activities and Teaching Methods

Lecture
Discussion
Questions/Answers

Assessment Methods and Criteria

	Quantity	Percentage (%)
Mid-term	1	30
Assignment	2	20
Total(%)		50
Contribution of In-term Studies to Overall Grade(%)		50
Contribution of Final Examination to Overall Grade(%)		50
Total(%)		100

ECTS Allocated Based on Student Workload

Activities	Quantity	Duration (Hour)	Total Workload (Hour)
Midterm exam	1	1	1
Preparation for Quiz
Individual or group work	14	3	42
Preparation for Final exam	1	30	30
Course hours	13	3	39
Preparation for Midterm exam	1	20	20
Laboratory (including preparation)
Final exam	1	1	1
Homework	2	5	10
Total Work Load			143
Total Work Load / 30 (h)			4.76
ECTS Credit of the Course			5

Language of Instruction

Turkish

Work Placement(s)

Programme Qualifications / Learning Outcomes

	LO1	LO2	LO3	LO4
K1	X	X	X	X
K2
K3
K4	X	X	X	X
K5	X
K6		X	X	X
K7
K8
K9
K10
K11
K12	X	X	X	X