Three Practical Assignments for the Introductory Risk Management and Insurance Student

• DOI: http://doi.org/10.1111/rmir.12014
• Date: 01 September 2013
• Published date: 01 September 2013
• Author: Kevin M. Gatzlaff

Risk Management and Insurance Review

C

Risk Management and Insurance Review, 2013, Vol.16, No. 2, 281-294

DOI: 10.1111/rmir.12014

THREE PRACTICAL ASSIGNMENTS FOR THE INTRODUCTORY

RISK MANAGEMENT AND INSURANCE STUDENT

Kevin M. Gatzlaff

ABSTRACT

I have developed, used, and refined an auto quote assignment, a life quote

assignment, and a retirement analysis assignment that seem to communi-

cate certain concepts well to the typical student enrolled in a risk manage-

ment and insurance principles course. These assignments consist of worksheets

requiring Internet research and a series of questions based on the answers

discovered. Additionally, a short class discussion follows each of the three as-

signments to further ensure that students have achieved the primary learning

objectives of each assignment. In their current form, these assignments are prac-

tical and require relativelyminimal student and instructor time. Each could eas-

ily be expanded to accommodate students with advanced understanding and

capability.

INTRODUCTION

Students in my classes report higher engagement and better performance when exposed

to a multiplicity of learning approaches. Previous insurance literature has detailed spe-

cific and innovative assignments and activities intended to reinforce important concepts.

For example, Baranoff (2001) describes a classroom game wherein students are assigned

the burden of certain risks, which then may be transferred to insurers. Haley (2012)

outlines a simulation that uses students’ statistical knowledge to price insurance in

situations where loss probabilities are unknown. Eckles and Halek (2007) describe a

classroom simulation modeling asymmetric information and its relationship to adverse

selection in insurance markets.

In discussing auto insurance, life insurance, and retirement planning, some concepts are

so important that illustrating them by example and requiring students to consider the

impact of certain proposed changes make it much less likely that crucial lessons will pass

Kevin M. Gatzlaff is with the Department of Finance and Insurance in the Miller College of

Business at Ball State University, Muncie, IN; phone: (765) 285-5167; fax: (765) 285-4314; e-mail:

kmgatzlaff@bsu.edu. The author thanks an anonymous reviewer for comments on this article

and participants at the ARIA conference in Minneapolis in August 2012, in particular,Jean Heck,

James Carson, Steve Avila, and Cassandra Cole. This research is supported by the Center for

Actuarial Science, Insurance, and Risk Management in the Miller College of Business at Ball State

University.This article w as subject to double-blind peer review.

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