The interaction of consumers and insurance companies creates characteristic problems that must be properly managed by market participants and government in order for viable insurance markets to exist. The goal of this seminar is to thoroughly explore the economic behaviour of insurance markets, and to apply this understanding to practical problems of various insurance lies of business, particularly general insurance and health insurance, where market behaviour problems most affect the ability of insurance companies to thrive.

The seminar begins by analysing characteristic economic market behaviour of consumers and insurance companies (Insurance Market Behaviour) and the consequences of their behaviors to the feasibility, profitability, and viability of insurance products (Market Failure Problems). Insurance Market Behaviour allows us to identify “critical factors” that affect insurance products, and to understand how insurance companies design effective Risk Management Tools to compensate for Market Failure.  This behavioural approach to understanding insurance is designed to provide seminar attendees with a useful theoretical framework and practical conceptual tools needed to design and manage insurance products.

The seminar is immediately followed by a second EAA-seminar on Healthcare Financing and Health Insurance, which applies the concepts and issues mastered by attendees to opportunities in private heath insurance markets. This seminar is an important resource for thorough understanding of material discussed in the Healthcare Financing and Health Insurance Seminar.