ECON 252: Financial Markets
Lecture 05 - Insurance: The Archetypal Risk Management Institution. Insurance provides significant risk management to a broad public, and is an essential tool for promoting human welfare. By pooling large numbers of independent or low-correlated risks, insurance providers can minimize overall risk. The risk management is tailored to individual circumstances and reflects centuries of insurance industry experience with real risks and with moral hazard and selection bias issues. Probability theory and statistical tools help to explain how insurance companies use risk pooling to minimize overall risk. Innovation and government regulation have played important roles in the formation and oversight of insurance institutions. (from oyc.yale.edu)
| Lecture 05 - Insurance: The Archetypal Risk Management Institution |
| Time | Lecture Chapters |
| [00:00:00] | 1. Circumventing Selection Bias in the Equity Premium Puzzle |
| [00:10:13] | 2. Politics in the Stock Market and Modern Mutual Funds |
| [00:19:43] | 3. The Intuition behind Insurance |
| [00:34:54] | 4. Multiline, Monoline, and P&C Insurances |
| [00:43:52] | 5. The Advent and Development of the Insurance Industry |
| [00:56:06] | 6. Government and NAIC Regulation of Insurance |
| [01:05:14] | 7. Problems with Insurance Companies Today |
| References |
| Lecture 5 - Insurance: The Archetypal Risk Management Institution Instructor: Professor Robert J. Shiller. Resources: Lecture 5 [PDF]. Transcript [html]. Audio [mp3]. Download Video [mov]. |
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