The Chinese University of Hong Kong, FINA 3210A/B Risk Management and Insurance, Fall, 2013

Instructor: Jason J. H. Yeh, A.S.A. (Society of Actuaries), Ph.D.(UW-Madison)
Class meetings:    
(A) T 10:30am ~ 12:15pm, WHM505; H 1:30pm ~ 2:15pm, WHM506

                            (B) T 1:30pm ~ 2:15pm, YIA503; H 10:30am ~ 12:15pm, WHM305

Office & Phone: Room 1213 CUHK Business School (CYT Building); 3943-7653
E-mail: jasonyeh@baf.msmail.cuhk.edu.hk
TA: Edwin Mok, edwinmok@baf.msmail.cuhk.edu.hk, 3943-7840
Course Web:
http://ihome.cuhk.edu.hk/~b103302/fin3210/fin3210.html
Text Web: http://www.pearsonglobaleditions.com/rejda

Download a copy of course outline ==> Here

Class buddies: http://y.yam.com/new.gifEach exchange student in the class will be randomly assigned two local students as their buddies (and potential group mates).

Typhoon Haiyan: The Insurance Perspective, 12 Nov 2013, III http://y.yam.com/new.gif

Storm surge in Philippines: ‘It was like a tsunami’ 11 Nov 2013, CNBChttp://y.yam.com/new.gif

Investment-linked insurance schemes a trap for unwary investors, 30 September, 2013, SCMP

Commercial: Responsibility. What's Your Policy?

Commercial: Chief Life Officer

Legal headaches take toll on JPMorgan's bottom line http://y.yam.com/new.gif JPMorgan deal 'preposterous': Former prosecutorhttp://y.yam.com/new.gifThe Purge (2013)

BestWeek Asia/Pacific 2013_042: Hub Attraction; China Plans, etc. October 22, 2013http://y.yam.com/new.gif

Obama opts to shut down for Obamacare; China warns US 'clock is ticking'; Debt default damage already unfolding; US rating must reflect creditor nations' view: Dagong

Best Week AP: 2013-40: Quack Protection; Singapore Opening; etc.

Mind the Risk

There Have Been More Mass Shootings Since Newtown Than You've Heard About (INFOGRAPHIC)

At least 12 killed in shooting rampage at Washington Navy Yard

MINIMIZING THE COST OF RISK WITH SIMULATION OPTIMIZATION TECHNIQUE

BestWeek Asia/Pacific 20013_034: Managing Assets / Political Risk

Managing Risks Like a Navy SEAL (Risk Management Magazine)

What are the odds… of living a simple, noble and humble life? VC’s speech on Monday

BestWeek Asia/Pacific 2013_033: Asia Boom; Asia Strategy August 27, 2013

Schedule: 

Sep. 2 ~ Oct. 12 Chapters in 12th edition (11th edition)

                Risk and Insurance (Reading: P-21-05.pdf)   

       1 Risk & Its Treatment (Power Point File: RMI01.ppt)

        2 The Insurance Mechanism (Power Point File: RMI02.ppt) Adverse Selection and deductibles

                Is this really insurance? "The bomb to deep center breaks a 1-1 tie and Mark Teixeira adds some insurance with an RBI groundout later in the frame."

        3 Fundamentals of Risk Management (Power Point File: RMI03.ppt) MTR’s Captive http://y.yam.com/new.gifHong Kong – Ideal Captive Centrehttp://y.yam.com/new.gif
        4 Additional Topics in Risk Management
(Power Point File: RMI04.ppt)

        9 (5) Legal Principles in Insurance (Power Point File: RMI09.ppt)

       10 (6) Analysis of Insurance Contracts (Power Point File: RMI10.ppt)

Exam #1: Oct. 17 6:30-8:00PM, LKC LT1 (Li Koon Chun Hall, Sino Building)

Oct. 22 ~ Nov. 23

        19 (7) Liability Risk (Power Point File: RMI19.ppt)

            Products Liability: McDonald's Hot Coffee; Stella Awards; Are You Amused by the Annual Stella Awards?  Hot Coffee (2011)

        11 (16) Fundamentals of Life Insurance (Power Point File: RMI11.ppt)

        12 (17) Life Insurance Contractual Provisions (Power Point File: RMI12.ppt)

        13 (18) Buying Life Insurance (Power Point File: RMI13.ppt)

        5 (24) Types of Insurers and Marketing Systems (Power Point File: RMI05.ppt) http://y.yam.com/new.gif

        6 (25) Insurance Company Operations (Power Point File: RMI06.ppt) http://y.yam.com/new.gif

        7 (26) Financial Operations of Insurers (Power Point File: RMI07.ppt) http://y.yam.com/new.gif

·         Link to Video Insurance market in China

 

Exam #2: Dec. 2 10-11:30AM, ELB LT1 (Esther Lee Building)

 Group Work for Mini Case Presentation (40%)

Grading:

Throughout the semester, there will be three quizzes for 10% of your grade.  Two of these quizzes will be announced at least one class period in advance, plus, a “surprise” quiz will be given at any time.  Make up quizzes will not be given.  However, your lowest quiz score will be dropped (so if you miss one, for any reason, that would be the one to drop).  Also, two non-cumulative tests, covering materials from lectures and the text, will be given, accounting for 45% of the grade.  Unless permitted in advance, failure to take a test on time will result in a score of zero for that part. Make-up exams will be allowed only for special consideration.

Finally, there is a group project (presentation and written report) on mini insurance case or two related to insurance claim disputes. I suggest you to visit the “Case Review” section of the ICCB (http://www.iccb.org.hk/en_index.htm) web site to choose your case(s). You may also find other sources of mini insurance cases for such purpose.  To avoid duplicates, you have to let me know your case(s) choice beforehand.  The details of this group work will be announced later.

Participation:           5%

Quizzes:      10%

Exams:        45%

Group work for Case Applications 40%  

CUHK Policy Against Sexual Harassment

CUHK Insurance Policies

CUHK HOMEPAGE; Facts and Figures

Related websites in Hong Kong: OCI, ASHK, HKFI, ICCB, IFPHK

Hong Kong - Ideal Captive CenterMTR's Fasttrack Insurance

BPF: Case for Hong Kong as a Captive Insurance Domicile: Study Paper; Distillation

How Singapore is doing?

 ACV in general equals replacement cost minus depreciation (ACV = Replacement Cost - Depreciation). But In some court decisions, fair market value is used to determine the actual cash value.  In Jefferson Insurance Company of New York v Superior Court of Alameda County (http://scocal.stanford.edu/opinion/jefferson-ins-co-v-superior-court-30176), a building valued approximately at $170,000 based on (replacement cost - depreciation) had a market value of only $65,000 when a loss occurred. The court ruled that ACV of the property should be based on the fair market value of $65,000 rather than on $170,000. 

Denver shooting: Gunman 'firing randomly' inside cinema

The Deadly Shanghai Fire

New Zealand: Costs of Saturday quake could total US$1.4 bln

Identify Exposure, Peril, and Hazard in this tragedy:  Woman, 19, dies after tree falls on her in Stanley, YouTube (State Compensation Law in Taiwan)

Satyam and PricewaterhouseCoopers under fire

Morgan Stanley Settles Gender Discrimination Case for US$54 Million;

Countryfile's Miriam O'Reilly wins BBC ageism claim

Medical Protection Society Rates; MPS rates 5 years ago

The Evolving Role of the Risk Professional: A Panel Discussion at the 2012 RIMS Canada Conference

Marsh: CUHK's D&O policy in 2010-11 ; Professional Indemnity; Trustee Liability; Medical Malpractice; Clinical Trial

New Source of Liability Risk: Social Media

Hurricane Sandy and Beyond

Wall Street Journal: Insurers Raise the Premiums on Term Life

Universal Life Insurance Illustration: Mortality charge and implied qx in Exhibit 16.5 http://y.yam.com/new.gif

Identifying and Responding to Volatility Issues http://y.yam.com/new.gif

BestWeek 2012_044: Capital Squeeze Trickles Down: HK Eyes Advanced Solvency Regime http://y.yam.com/new.gif

BestWeek Asia/Pacific 2012_048: Munich Re Sees Asia as Growth Engine in Need of Transformation, Nov. 27, 2012 http://y.yam.com/new.gif