This course will focus on the micro and macro risks and prudential policies for the European insurance sector. It will provide an overview of the business model of insurers – from the principle of risks pooling to reinsurance and insurtech – and of the main risks insurers are exposed to.
The course will also describe the current microprudential framework, namely Solvency II, and will discuss why a recovery and resolution and a macroprudential framework for the (re)insurance sector are needed.
You will learn the role of insurers and reinsurers in the economy and their interaction with other economic sectors
You will learn how the insurance mechanisms works and get an overview of the European insurance sector
You will understand the main risks insurers are exposed to and how they can contribute to risks to financial stability
You will learn about the microprudential requirements that apply to European (re)insurers – Solvency II
You will understand why a recovery and resolution framework and macroprudential tools are needed and how they could be designed