| CODE | INS5008 | ||||||||||||
| TITLE | Applied Alternative Risk Transfer | ||||||||||||
| UM LEVEL | 05 - Postgraduate Modular Diploma or Degree Course | ||||||||||||
| MQF LEVEL | 7 | ||||||||||||
| ECTS CREDITS | 5 | ||||||||||||
| DEPARTMENT | Insurance and Risk Management | ||||||||||||
| DESCRIPTION | Risk management is a dynamic and well-established discipline practiced by many companies around the world. Traditional forms of risk management – loss control, loss financing and risk reduction, arranged through mechanisms such as insurance and derivatives – have been actively used by companies for many decades, and are an essential element of most corporate strategies. But newer forms of risk protection – including those from the alternative risk transfer (ART) market, the combined risk management marketplace for innovative insurance and capital market solutions – often surface as viable, flexible and cost-efficient options. In fact, some firms already use ART mechanisms to supplement their traditional risk management strategies; many others, however, have yet to take advantage of the benefits offered by the marketplace This study-unit provides an introduction to the main ART techniques that are currently in use. Following a brief introduction to the subject, the unit will explore various alternative risk carriers like captives, retention groups and pools, together with alternative products like finite reinsurance and new asset solutions. The study unit will also seek to describe how securitisation and special purpose vehicles (SPVs) can be used to transfer risk, using real-world examples of how firms can achieve their objectives using these innovative tools. Study-unit Aims: This study-unit aims to provide an appreciation of: - why the various ART techniques have been developed; - what their key features are, their contractual structures, how they differ from traditional insurance and who the counter-parties are; - the situations in which they can be used; - the advantages and disadvantages to the counter-parties involved; - the current trends in ART development. Almost all of the ART structures considered will be introduced and/or illustrated with real-life examples and case studies. Learning Outcomes: 1. Knowledge & Understanding By the end of the study-unit the student will be able to: i) Identify technological risks and controls; ii) Determine when technological risks may be acceptable to organisations; iii) Evaluate existing controls; iv) Identify tools and techniques to evaluate logical controls and risk measures. 2. Skills By the end of the study-unit the student will be able to: i) Evaluate implications of technological risks and the control frameworks within organisations within the risk appetite and tolerance of stakeholders; ii) Identify ineffective technological controls and the implications; iii) Identify mitigation techniques. Main Text/s and any supplementary readings: Banks, E. (2004). Alternative risk transfer: integrated risk management through insurance, reinsurance, and the capital markets. John Wiley & Sons. |
||||||||||||
| STUDY-UNIT TYPE | Lecture | ||||||||||||
| METHOD OF ASSESSMENT |
|
||||||||||||
| LECTURER/S | Denise Cachia Reuben Fenech Jonathan Spiteri (Co-ord.) |
||||||||||||
|
The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2024/5. It may be subject to change in subsequent years. |
|||||||||||||