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The University of Southampton

MANG6071 Insurance

Module Overview

The module gives a general introduction to the theory and practice of insurance, reinsurance and captive operations. It seeks to meet the industry’s requirement for graduates with a strong insight into what makes the industry unique in terms of its handling of risk and uncertainty.

Aims and Objectives

Learning Outcomes

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

  • the basic considerations that drive the operation of insurance;
  • the problems that need to managed in operating insurance;
  • the various forms of insurance that can arise in practice.
Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

  • explain the rationale for different forms of insurance.
Transferable and Generic Skills

Having successfully completed this module you will be able to:

  • critical thinking, reflection and verbal communication during the module, and subsequently through preparation for the examination, key skills in information handling, critical analysis and written communication.


• Context: areas of risk in business, pure and speculative risks, origins of insurance, range of strategies for responding to risks • Elements of an insurance transaction: pooling of resources, insurance services and their function, main classes of commercial insurance, problems for insurers • The nature of insurable risks: fundamental and particular risks; criteria for insurability; insurable interest, rationale and applications • The insurance proposal: the problem of adverse selection, information asymmetry, information disclosure and contracts uberimmae fidei • Pricing insurance: principal rating procedures, underwriting for non-standard risks, physical and moral hazard, the dynamics of the insurance cycle, • Claims procedures: proximate cause and proof of loss, claims settlement, role of loss adjustors, indemnity and measurement of loss, subrogation, and contribution • Reinsurance: rationale for reinsurance, types of reinsurance • Risk financing: role of risk financing in risk management, rationale for purchase of corporate insurance, retention versus transfer, captives, finite risk programmes, insurance securitisation

Learning and Teaching

Teaching and learning methods

The module will be taught through a mixture of methods ranging from guided background reading, lectures, and group discussion of concepts and examples. Where appropriate the lecturer will draw on the experiences of students and through class discussion, encourage reflection on concepts and processes. Acquisition of knowledge is an important objective of this introductory module. To facilitate learning, the teaching approach emphasises the basic rationale for insurance and the problems that require treatment in operationalising effective insurance.  

Independent Study63
Total study time75

Resources & Reading list

R. Thoyts (2010). Insurance Theory and Practice. 

S.R.Diacon & R.L.Carter (1992). Success in insurance. 

D. Atkins & I. Bates (2008). Insurance. 



Class discussions


MethodPercentage contribution
Individual Coursework 100%


MethodPercentage contribution
Individual Coursework 100%


MethodPercentage contribution
Individual Coursework 100%

Repeat Information

Repeat type: Internal & External


Costs associated with this module

Students are responsible for meeting the cost of essential textbooks, and of producing such essays, assignments, laboratory reports and dissertations as are required to fulfil the academic requirements for each programme of study.

In addition to this, students registered for this module typically also have to pay for:


Recommended texts for this module may be available in limited supply in the University Library and students may wish to purchase the mandatory/additional reading text as appropriate.

Please also ensure you read the section on additional costs in the University’s Fees, Charges and Expenses Regulations in the University Calendar available at

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