SECS-S/06 - 9 CFU - 2° Semester

Teaching Staff


Learning Objectives

1.Knowledge and understanding

The purpose of the course is the acquisition of theoretical principles concerning the life and non life insurance as well as pensions systems and social insurance. Beyond the indispensable theoretical knowledge, properly formalized, we also intend to transfer adequate professional skills to deepen the topics covered by an operational point of view.
The teaching methodologies are designed to develop students’ professional skills using also multimedia, database access, use of spreadsheets, etc. The exam is composed of a written test and an oral examination, withe the goal of testing for the student’s knowledge, his understanding of the abstract concepts, and their translation from an operational point of view. During the entire course, knowledge and understanding are tested on a continuous basis, and a fruitful and active participation by students is always stimulated.

2. Applying knowledge and understanding

Special attention is also paid to operating activities of future graduates, who are facing the problems professionally before mentioned, often under different assumptions or in different contexts, also transversal and interdisciplinary. To this end, teachers use a teaching method with the emphasis to the acquisition operations ("know-how") of the analytical tools and concepts proposed during the teaching of the discipline, aiming to develop critical skills of the student in a continuous process interaction analysis - synthesis, also presenting in the classroom appropriate real cases, guiding the study and analysis with the help of educational tools and technology more appropriate. Teachers care in its review of final learning the actual acquisition of these skills, even proposing and discussing critically and constructively with students drawn from them prepared with these precipue purposes.

3. Making judgments
The development of a critical ability in the context of the topics covered is a major educational objectives of teaching. A good acquisition of theoretical knowledge and operational chapabilities in the program of education is not enough for a complete training of the student if such preparation is not accompanied by the acquisition of a thorough, independent, socially and morally responsible for chapacity assessment, setting and resolution of a problem, proposing models that consider more appropriate analysis of financial issues considered. Such awareness serves as a guide to teachers throughout the training of discipline, making them interact with students in a constructive logic, in order to stimulate all phases of teaching, their chapacity for reflection, acquisition and interpretation of the information needed and Data essential, although insufficient or incomplete, for the management of complex issues, the construction and understanding of formal models, both descriptive and prescriptive. The focus is, therefore, training of research of economic and financial information sources, both traditional and modern, more appropriate (consultations of specialized publications, databases, websites, etc.),

4. Communication skills

The teaching will put the student in a position to transfer to third parties, even non-specialists, with clarity, precision and language appropriate technical, information, analysis, value judgments, projects and proposals on complex financial issues, that on the job will face. The student is continually urged to make oral and formally their thoughts in proper arguments and techniques, to draft documents in writing, to prepare presentations multimedia, individually and in groups, to discuss what has been presented in the classroom, to stimulate a fruitful collaboration on the level of communication. The final exam is an additional chance for reflection and verification of the various communication skills actually achieved by the student. 5. Learning skills will provide students both an encouragement for a more active participation as possible to the entire educational process and for an improvement in the method of study and the purpose of a more effective learning of the discipline, presenting characteristics precipue in terms of learning by means of an appropriate process inductive - deductive.

Course Structure

The course starts by recalling basic concepts of probability theory. After the basic concepts of theory of insurance mainly related to the concepts of expected net present value and expected utility are introduced. After, the insurance portfolio management is discussed. Non life insurance and life insurance are presented. Finally, pension plans and health insurance are treated.

Detailed Course Content

Probability theory. Probability and random events. Several types of porbability: classical probability; statistical probability and subjective probability. Total probability for incompatible events and composed probability for compatible events. Examples and appliations. Repeated trials. Random variables: basics, theorems and applications. Cumulative distribution functions of a discontinuous random variable. Bernoulli's Theorem. Probability of a given di deviation. De Moivre – Laplace's Theorem. Bienaymè Tchebycheff's Theorem. Probability distribution and its applications.

Financial operations and insurance: operations under certainty and operations under uncertainty. Values, present values, expected values and expected net present values. The price in a financial operation under uncertainty. Expected value and variance. The utility function. The expected utiity criterion. Insurance applications.

The insurance portfolio management.Mutuality and solidarity in a portfolio. Uncertainty in the expenses of a portfolio. Risk and reinsurance. Technical and practical aspects of reinsurance. Insurance portfolio management: time dimension. .

Non-life insurance.

Life tables. Life insurance. Mathematical reserve.

Finance in life insurance: linking benefits to the investment performance. Adjusting benefits. Participating policies. Unit-linked policies. Index-linked policies. Universal Life policies.


Life insurance pricing. Single premiums. Periodic premiums. Loading for expenses. Premium components.Expenses and loading for expenses. The expense-loaded premiums.

Pension plans. Health insurances.

Textbook Information

Ermanno Pitacco, Elementi di Matematica delle assicurazioni, Lint, Trieste 2009.

Olivieri, Annamaria, and Ermanno Pitacco. Introduction to Insurance Mathematics: Technical and financial features of risk transfers. Springer, 2015.

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