LIFE AND HEALTH INSURANCE - The Chinese University of Hong Kong

Document Sample
LIFE AND HEALTH INSURANCE - The Chinese University of Hong Kong Powered By Docstoc

                             FIN3230 Life and Health Insurance
                                 Second Term 2010-2011
Session A: Tuesday 10:30am – 12:15pm, T.C. Cheng Bldg 111
           Thursday 1:30pm – 2:15pm, T.C. Cheng Bldg 201
           Medium of Instruction: Cantonese and English

Session B:    Monday 9:30am – 11:15am, T.C. Cheng Bldg 201
              Thursday 5:30pm – 6:15pm, T.C. Cheng Bldg 201
              Medium of Instruction: Cantonese and English

Instructor: Professor Wai Sum Chan                      Phone: 2609-7715
Office: Room 1226, Cheng Yu Tung Bldg                   E-mail:

Tutor: Miss Iris Lok Lam Au                             Phone: 2609-7840
Office: Room 1155, Cheng Yu Tung Bldg                   E-mail:

Part A: Life Insurance

Learning Objectives

In this section, the students will gain the understanding of various aspects of life insurance,
 Economics of life insurance
 Pricing of life insurance
 Life insurance company organization and management
 Underwriting of life insurance
 Marketing of life insurance

Learning Outcomes

It is anticipated that after this course students are able to explain the major issues in the operation of
life insurance, understand the pricing of life insurance, as well as the factors affecting the
competition in life insurance industry.


   Life and Health Insurance / Black, Skipper (13th edition), 2000, Chapters 1, 2 and 23-26.
   SOA-Study Note-210-25-98 Introduction to Pricing and Asset Shares, Chapters 1-5.

Part B: Health Risk

Learning Objectives

This section will provide the students with the knowledge of the problems of health care in the
United States and Hong Kong, the different types of insurance plans and insurance plan coverage,
and the types of managed care organizations and alternative healthcare plans available to patients.
The on-going healthcare financing reform in Hong Kong will also be discussed.

Learning Outcomes

It is anticipated that after this course you are able to explain the major health care issues in America
and Hong Kong, understand the basic characteristics of individual major medical insurance, long-
term care insurance, as well as disability-income plans. Students should be able to develop
guidelines when purchasing individual health insurance. With knowledge in this course, students
should be able to debate on health care policy and health financing reform in Hong Kong.


   Principles of Risk Management and Insurance / Rejda (10th edition), 2008, Chapters 15 and
    Textbook website:

   Research Articles
     Leung, G.M., Tin, K.Y.K. and Chan, W.S., “Hong Kong’s Health Spending Projections
        Through 2033,” Health Policy, 2007, 81, 93-101.
     Chan, W.S., Li, S.H. and Fong, P.W., "An Actuarial Analysis of Long-Term Care Demand
        in Hong Kong," Geriatrics and Gerontology International, 2004, 4, S143-145.
   Hong Kong’s Health System: Reflections, Perspectives and Visions / Leung, Bacon-Stone, 2006
     Part IV Commentary: Health Financing Reform by Gabriel M. Leung and John Bacon-
     Chapter 19: Health Financing in Hong Kong: The Current Status by Raymond Yeung and
        Chan Wai-Sum
     Chapter 20: A Systematic Approach to Reforming Hong Kong's Health Financing: The
        Harvard Proposal by Winnie Yip and William Hsiao
     Chapter 21: Health Financing and Resources: New Government Proposals by Looi-Looi
        Low and Su-Vui Lo
   Hong Kong Government Health Care Reform Consultation Reports
    (Executive Summaries Only):

Learning Activities

                     Lecture                         Seminar              Project Presentation
          In class             Out class             In class          In class          Out class
         Ten 3-hour                                 One 3-hour        Two 3-hour
                            3 hours/week                                               1 hour/week
          sessions                                   session           sessions
             M                    M                     M                 M                 M
            M: Mandatory activities in the course       O: Optional activity   NA: Not applicable

Assessment Scheme

There will be one final examination, one life insurance pricing group project and one health
insurance group project. Students are required to attend all project presentation sessions. The final
grade will be weighted as follows:

              Task Nature                                                Percentage
              Life insurance pricing project                                15%
              Health insurance project                                      25%
              Attendance & participation (project presentation sessions)    10%
              Final centralized examination                                 50%
              Total                                                        100%

Life Insurance Pricing Project

This is a group project. You are required to build a spreadsheet model to apply the gross premium
method and asset-share model to price life insurance, to assess reserve and cash value, and to find
profitable insurance premiums. The details will be provided in a document.

Health Insurance Project

This is a group project on health insurance. This group project is about conducting a product review
of medical insurance products of your choice. The objective and scopes are detailed in a document.
The group project requires both written report and presentation in class.

Course Schedule

   Week            Topic items                                         Readings
   #1              Economics of life insurance                         Black and Skipper
   Jan 10 – 15                                                         Chapter 1
   #2              Life Insurance Company: organization,               Black and Skipper
   Jan 17 – 21     management and marketing                            Chapters 23 and 24
   #3              Underwriting and Marketing of life insurance        Black and Skipper
   Jan 24 – 28                                                         Chapters 24 to 26
   #4 (with 1-wk   Life Insurance Pricing Fundamentals                 Black and Skipper
   CNY break)                                                          Chapter 2 / SOA Notes
   Jan 31–Feb 11                                                       Chapters 1 and 2
   #5              Life Insurance Pricing using Asset Shares           SOA Notes
   Feb 14 – 18                                                         Chapters 3 to 5
   #6              Discussion of Life Insurance Pricing Project
   Feb 21 – 25
   #7              Individual Health Insurance Coverage                Redja Chapter 15
   Feb 28–Mar4
   #8              Group Health and Managed Care Plans                 Redja Chapter 16
   Mar 7 – 11
   #9              Health Financing in Hong Kong: The Harvard          Leung, Bacon-Stone
   Mar 14 – 18     Proposal                                            Chapter 20
   #10             Health Financing in Hong Kong: The Current          Leung, Bacon-Stone
   Mar 21 – 25     Status                                              Chapter 19
   #11             Health Financing in Hong Kong: The Future           Leung, Bacon-Stone
   Mar 28–Apr1                                                         Chapter 21
   #12             Health Insurance Project Presentation
   Apr 3 – 8
   #13             Health Insurance Project Presentation
   Apr 11 –15

Feedback for Evaluations

   Course Teaching Evaluation. To be conducted during the last two weeks of lectures.
   Focus-group meeting. To be conducted in May 2010.
   E-mail. Feel free to send comments to the instructor via e-mail.
   Performance in test and examination. Assessment of what has been achieved by the students.

Course Materials and Announcements

A course website has been set up in WebCT. Students can download all the course materials from
this website. All course announcements will be made during lectures and through the course

Academic Honesty and Plagiarism

Attention is drawn to University policy and regulations on honesty in academic work, and to the
disciplinary guidelines and procedures applicable to breaches of such policy and regulations.
Details may be found at