Carl H. Lindner College of BusinessCarl H. Lindner College of BusinessUniversity of Cincinnati

Carl H. Lindner College of Business
Center for Insurance and Risk Management

Course Descriptions

IRM 3090:            Principles of Risk and Insurance              

This course examines the structure of the insurance industry, examining the strategic, regulatory, and risk management issues associated with the different types of products and institutions in this industry.  The course starts by identifying a variety of different pure risks and providing a fundamental analysis of insurance markets and risk sharing. Given these fundamentals, the course conducts a detailed examination of the various operational functions in insurance companies (including underwriting and pricing) and the various insurance products available (including property, liability, life, and health insurance).  The course also examines the financial structure of insurance companies and examines the management of assets and liabilities.  The course provides important context and background material for the more detailed and operational analysis of various products and functions covered in subsequent courses (IRM 4010, Life and Health Insurance; IRM 4020, Property and Liability Insurance; and IRM 4043, Modeling, Pricing, and Managing Risk).  Prerequisite: FIN 3080 or instructor approval.               


IRM 4010/IRM 6010*:            Life and Health Insurance

This course provides a detailed survey of the legal, financial, pricing, underwriting, and strategic issues involved in the variety of different life and health insurance products available in the marketplace.  The course examines the variety of different products offered, highlighting how the differences affect their pricing and the service they provide.  Much of the course concerns determining which contracts or products are best suited to solve a variety of problems faced by individuals and businesses. The course will also examine the issues raised by major regulatory reforms. Describes the types of goals various types of customers of such products can have.  The learning objectives of the course are to have students be able to: (1) describe what the differences between the various products imply with respect to performance on the variety of customer goals, (2) evaluate whether the specific terms of one contract or product dominates another, (3) identify the major sources and implications of regulation, with a historical perspective, (4) describe how the regulatory environment affects the efficacy of various product features in terms of performance for the customer and in terms of profitability to the insurance provider, and (5) compare the efficacy of life insurance products to alternative products offered by other financial services organizations (e.g., mutual funds, banks, etc.).  Prerequisite: IRM 3090 or instructor approval.

*Course is cross-listed as 6010 for graduate level enrollment. Students may not enroll in both IRM 4010 and IRM 6010.


IRM 4020/IRM 6020**:            Property and Liability Insurance                              

This course provides a detailed survey of the legal, financial, pricing, underwriting, and strategic issues involved in the variety of different property and liability insurance products available in the marketplace.  The course will be divided into two parts.  The first part covers the material with respect to property insurance and risk, while the second part covers the material with respect to liability insurance and risk.  Describes the variety of property and liability insurance products that are available.  The learning objectives for this course include having students be able to: (1) describe the types of goals various types of customers of such products can have, (2) describe what the differences between the various products imply with respect to performance on the variety of customer goals, (3) evaluate whether the specific terms of one contract or product dominates another, (4) describe the process by which such products are distributed, and (5) identify the major sources and implications of regulation, with a historical perspective.  Prerequisite: IRM 3090 or instructor approval.

**Course is cross-listed as 6020 for graduate level enrollment. Students may not enroll in both IRM 4020 and IRM 6020.


IRM 4030:            Modeling, Pricing, and Managing Risk

This course examines the set of analytical techniques used to assess the probability and realized loss associated with insurable events. These techniques allow insurance companies and firms to appropriately quantify expected loss in order to price insurance coverage.  The course also examines the financial and operational risks faced by insurance companies and presents the techniques used to manage these risks.  Although the course considers the risk management issues of a variety of financial services firms, including depository institutions, the course focuses mainly on the risk inherent in the operations of insurance companies.  The course considers a variety of sources of risk, including interest rate risk, market risk, liquidity risk, and counter-party risk, and considers a variety of techniques used to manage these risks, including diversification across product lines, re-insurance, and securitization.  The course also examines the use of products designed to isolate various types of risk, including credit derivatives and swaps. With this course, students should be able to (1) quantify the probability of an insurable event, the cost given that event, and expected value of an insurance contract written on that event, conditional on available information, (2) determine the financial value of insurance contracts, (3) identify and quantify the financial and operational risks facing financial services firms in general and insurance companies in particular, (4) determine and apply the appropriate set of financial and operational risk management strategies and techniques in order to maximize the value of the insurance company or financial services firm, and (5) identify and quantify the trade-offs between various risk management approaches and techniques. Prerequisite: IRM 3090 or instructor approval.