This course provides an introduction to research on the intersection between insurance and financial economics. Starting from what modern insurance companies do and their role in the broader economy, we develop a unifying framework to study the pricing and design of insurance contracts, reinsurance decisions, and asset allocation strategies in equilibrium. In this framework, supply side frictions, such as regulatory frictions and imperfect competition, play a central role. In addition to developing the theory, we discuss how to estimate the models and how to use them to answer policy questions.
The basics of modern insurance markets in terms of products sold, regulation et cetera
Develop a unifying theory to understand modern insurance companies
Use recent tools from IO and finance to take the model to the data and answer policy questions