Risk Management & Insurance
Ranked 11th in the country by U.S. News & World Report
Gamma Iota Sigma
The risk management and insurance major focuses on developing decision-making skills in the face of uncertainty and providing an understanding of risk transfer markets. The Moore School’s risk management and insurance program is consistently regarded as one of the nation’s best. It is currently ranked No. 11 in the country by U.S. News & World Report.
The Risk Management and Insurance major aims to produce graduates with analytical and qualitative decision making skills that allow them to make rational, objective decisions under uncertainty. Therefore, we provide students with frameworks, models, analytical skills and a holistic, enterprise-wide perspective of risk. These concepts are applied and illustrated using the insurance industry, for which risk management is fundamental.
Risk management is a growing field as companies face more — and more varied — challenges around the globe. Organizations of all kinds are placing greater emphasis on identifying and managing risk, creating demand for risk managers across a wide range of industry sectors.
Increasingly, many organizations are taking a proactive and holistic approach to risk that considers a wide range of risks, including price volatility, cyber security, reputation damage, natural disasters, pandemics,… This approach, known as enterprise risk management, requires creative, strategic thinking. The Moore School’s risk management faculty take an enterprise risk management approach in their own scholarship and are committed to training students in this approach as well.
The risk management and insurance major:
• Teaches disciplined methods for making decisions under uncertainty
• Provides a broad framework for evaluating all types of risk
• Introduces risk management as a rational method for identifying and treating all types of risk
• Emphasizes risk assessment as core element of business literacy
• Examines risk transfer markets, including both insurance markets and derivative markets
• Applies concepts from finance, probability and statistics to measure risk and to make better risk decisions
• Engages students in the discussion of key public policy issues involving risk
• Deepens appreciation of the difficult trade-offs that are required to resolve public policy issues
• Positions risk management as a powerful methodology
• Illustrates the power of language, tools and concepts to manage in a complex world
• Challenges students to develop their ability to think critically
There are a number of insurance scholarships available for undergraduate students majoring in risk management and insurance and in actuarial mathematics. Applications for the 2015-16 academic year are due on March 6, 2015. Click here to download the application. The deadline for the 2015-16 academic year has passed. The new scholarship application will go online in January 2016.
Careers in Risk Management and Insurance
Graduates with degrees in risk management and insurance are employed as:
- Underwriters in life, health, or property and casualty insurance industries
- Insurance brokers
- Investment analysts
- Risk managers for insurance companies and multinational corporations
- Marketing representatives for companies in life, health or property and casualty insurance industries
Risk management and insurance majors are employed as insurance brokers, investment analysts and risk
managers and as underwriters in the life, health or property and casualty insurance industries.
Companies that hire Moore School risk management and insurance majors include Accenture, AIG, AllRisks, Amica, Bank of America, BlueCross BlueShield, Chubb, Citigroup Inc., CAN, Colonial Life, GE Capital, Freddie Mac, Geico, Liberty Mutual Group, Markel, Metropolitan Life Insurance Company, Morgan Stanley, Principal Financial Group, PricewaterhouseCoopers, Standard and Poor’s, State Farm Insurance, SunTrust, Time Warner and Wells Fargo.
The risk management and insurance major is a good fit for people who:
• Want to be good at problem solving
• Want to be good at making decisions when there is uncertainty about the outcome
• Enjoy working collaboratively with people across a range of functional areas
The Moore School’s Lambda chapter of the Gamma Iota Sigma international risk management, insurance and actuarial science collegiate fraternity is large and active. In addition to bringing in guest speakers and providing opportunities for students to network with industry professionals, Gamma Iota Sigma connects students to scholarships, internships and philanthropic activities and hosts social events and fundraisers. Joining Gamma Iota Sigma is a great way for students to learn more about the industry and start building a strong peer network of future risk management professionals. Click here to join Gamma Iota Sigma and get more involved with the risk management and insurance community.
See below for a listing of the undergraduate risk management and insurance courses.
FINA 341 – Management of Risk and Insurance
This is the foundational course in risk management and insurance. The objective is to provide students with a broad framework for evaluating all types of risk, along with conceptual tools for making risk management decisions rationally and consistently. It is intended for business students from all disciplines, including those who intend to take only one course in risk management and insurance. The course also serves as the introductory course for students wishing to pursue further studies in the field. The course focuses on the economics of risk, decision-making under uncertainty, and the methods for managing risk. We analyze risk transfer markets in some detail, including issues of moral hazard, adverse selection, and insurance pricing. In addition to learning about risk, students should find themselves challenged. The broader aim is to strengthen critical thinking ability, and grow problem solving and decision making skills.
FINA 442 – Life Insurance
This course provides an in-depth analysis of various life and health (L&H) insurance contracts, the management of L&H insurers, and current public policy issues related to the L&H insurance industry.
FINA 443 – Property & Liability Insurance
This course provides an in-depth analysis of various property and casualty (P&C) insurance contracts, the management of P&C insurers, and current public policy issues related to the P&C insurance industry.
FINA 469 – Investment Analysis and Portfolio Management
This course provides an overview of the various investment instruments available in the market place, portfolio theory and the valuation models used to price securities.
FINA 444 – Corporate Risk Management
This course covers how enterprise risk management can add value, models for measuring and assessing risk (e.g., value at risk), various methods of managing risk, including mitigation, insurance, derivatives and alternative risk transfer.
The courses below will soon be available as electives for the Risk Management and Insurance major.
FINA 446 -- Insurance Operations (previously 490)
Exposes students to the various aspects of insurance operations. The focus is on how insurers innovate to compete in the modern world.
FINA 471 -- Derivative Securities
Options, forward and futures contracts, and swap contracts are analyzed, along with their uses in risk management, portfolio management, and corporate financing. Markets where these contracts trade will be examined.
ECON 531 -- Health Economics
Applications of economic analysis to health care. Structure and behavior of health-care markets. Description of health care policy issues.