PGDM-IBM, Trimester-I, Batch 2022-2024

Course Name and Code : Insurance Economics (ECO2108)

Type of Area/Course : Core (Insurance)
Instructor Name: Dr. Khanindra Ch. Das
Course Credit: 3
Total Number Teaching Hours: 30 Hours
Mapping with PILO*: -

Course Learning Goals (CLGs)

Upon completion of the course students shall demonstrate understanding about various markets and the
economics behind the working of insurance markets.

The course helps in understanding the working of economic forces of demand, supply, and markets along with
pricing practices and rational behind regulation.

Further, the course deals with uncertainty and choices involving uncertainty which has a bearing on the
demand for insurance as well as on the insurance market. After studying these topics students could assess
the functioning of market in general and the nature and functioning of insurance market in particular.

Mapping with Assessment

Actual CILO
Course Intended PILO Attainment Tools Expected CILO*
CILO Blooms Taxonomy Attainment
Learning Outcomes Level-High / Direct / Attainment Level
Level
Medium/ Low Indirect
Understand the
economic forces of understand / Group 1. Not more than
1 NA
demand, supply, demonstrate project 15% students
and market. should score
less than 40%
Identify marks
inefficiencies in
2 the markets and illustrate/ apply NA Presentation 2. Not more than
15% students
the reasons
should score
behind such less than 40%
inefficiency. marks
Analyze choices
involving 3. Not more than
Individual
3 uncertainty and analyse/ infer NA Assignment & 20% students
Quiz should score
the demand for
less than 40%
insurance. marks

Session Plan, BIMTECH, Greater Noida Page 1

Instructor Contact

Email: khanindra.das@bimtech.ac.in

Phone: +91-(0)120-6843000-10 / +91 8132072770 (M), Ext 440

Reading/Study Material
Main Text Book
 Managerial Economics, Salvatore and Rastogi (SR), Oxford
 Microeconomics by B. Douglas Bernheim and Michael D. Whinston (BW), Tata McGraw Hill (ISBN: 978-
0-07-008056-0)

Additional References
 Cases: 1) Note on Insurance Industry in India; 2) Insuring the poor: Bajaj Allianz Micro insurance
initiatives in India; 3) At-bay cyber insurance; 4) Travelers insurance: Focusing on climate change and
natural disaster risk
 Additional material (clip, slide, article etc.) shall be provided.

Pedagogy
Lectures, Case Discussions, Games, Presentation, Group project, Individual Assignments/quizzes,
Tutorials.

Assessment Criteria
Criteria Marks/Weightage Date /Week #
Individual Assignment / Quizzes 20% Week 7&8
Presentation 10% Week 3
Group project 20% Week 5
End Term Exam 50% End of Trimester
Total 100%

Expectations from the students

1. Read/watch assigned chapters/cases / articles etc. before the session and participate in discussion.

2. Keep a track of deadlines.

Session Plan, BIMTECH, Greater Noida Page 2

Schedule/ Weekly Plan
Case
Learning
Assessment Studies/
Week Topics Covered Outcomes/
/ Deadlines Articles/
Skills
Exercises
CILO2
 Market structure and regulation:
Competitive markets; Oligopoly,
Monopolistic Competition, Monopoly,
1-3 Presentation
Duopoly, Cartel, Barriers to entry, pricing
practices; Price/premium control, causes of
market failure, regulation and rationale
CILO1
 Choices and demand, constraints; Demand
and its determinants, Special reference to
demand for insurance and its determinants; Group
4
Supply and its determinants, Special project
reference to supply of insurance and its
determinants.
CILO1
 Production and Cost; Factors of production
(land, labor, capital, entrepreneurship),
Variable input; Relation between inputs and Group
5
output (production function), cost of project
production and types of cost, economies and
diseconomies of scale
CILO3
 Choices Involving Uncertainty; Uncertain
Individual
payoffs and Expected Payoff; Risk
6 Assignment/
Preferences: Risk Aversion, Risk Loving, Risk
Quiz
Neutral; Utility and Expected Utility
CILO3
 Economics of Uncertainty, Information
Asymmetry and its link with Insurance
Market; Nature of Insurance, Demand for -Individual
7-8 Insurance, The Value of Insurance, Certainty Assignment/
Equivalence, Insurance Premium; Market for quiz
lemons, Effect of information asymmetry in
insurance market, ESG practices

Class Rules and Regulations

1. Be in the (online/offline) class room two minutes before time.
2. Read assigned topics/cases for class discussion.
3. Be open to new and innovative approaches.
4. Keep a track of deadlines.
5. Avoid unethical practices.

Session Plan, BIMTECH, Greater Noida Page 3