FIUBPPOJ Insurance

School of Business Administration in Karvina
Winter 2025
Extent and Intensity
2/1/0. 6 credit(s). Type of Completion: zk (examination).
Teacher(s)
Mgr. Lenka Přečková, Ph.D. (lecturer)
Guaranteed by
Mgr. Lenka Přečková, Ph.D.
Department of Finance and Accounting – School of Business Administration in Karvina
Contact Person: Ing. Irena Szarowská, Ph.D., MPA
Timetable
Wed 14:45–16:20 B307
  • Timetable of Seminar Groups:
FIUBPPOJ/01: Wed 16:25–17:10 B307, L. Přečková
Prerequisites
FAKULTA(OPF) && TYP_STUDIA(B) && FORMA(P) && (ROCNIK(2) || ROCNIK(3))
None
Course Enrolment Limitations
The course is only offered to the students of the study fields the course is directly associated with.

The capacity limit for the course is 36 student(s).
Current registration and enrolment status: enrolled: 35/36, only registered: 3/36
fields of study / plans the course is directly associated with
Course objectives
The aim of the course is to provide students with a comprehensive overview of the principles and functioning of insurance and the insurance industry. Students will acquire knowledge of basic concepts, historical development, and the importance of insurance, and will be able to navigate the structure and functioning of the insurance market, its entities, and the legislative framework. The course focuses on understanding the significance of regulation and supervision, in particular the role of the Czech National Bank and the principles of European regulation. Students will learn to analyze the performance of the insurance market through key indicators, to understand the principles of risk management and the calculation of premiums. Emphasis is placed on explaining insurance-technical principles, the relationship between insurable interest and insurance benefits, different forms of insurance, the sum insured and the insurance value, deductibles, and underinsurance. The objectives also include an understanding of the basic products of life and non-life insurance, their purpose, structure, and practical application, as well as an orientation in distribution channels, bancassurance, and current market trends. Students will also acquire knowledge of the principles of insurers’ solvency and its monitoring within the framework of European regulatory requirements.
Learning outcomes
Upon completion of the course, the student will be able to define the basic concepts of insurance and the insurance industry, understand their significance and historical development, and explain the nature and structure of the insurance market, including the distinction between the non-life (general) and investment insurance market, its main entities, and the legislative framework. The student will understand the importance of regulation and supervision, recognize the role of the Czech National Bank, and explain the principles of European regulation. They will be able to interpret, calculate, and evaluate the key performance indicators of the insurance market, demonstrate knowledge of risk management principles, distinguish between insurable and non-insurable risks, and explain the calculation and structure of insurance premiums. Furthermore, the student will be able to explain the relationship between insurable interest and insurance benefits, distinguish between different forms of insurance, the sum insured and the insurance value, and understand the principles of deductibles and underinsurance. They will identify and characterize the basic products of life and non-life insurance, understand their purpose, structure, and practical application, and also comprehend the nature and models of bancassurance, navigate distribution channels, and assess current market trends. Finally, the student will understand the importance of insurers’ solvency and its monitoring within the framework of European regulation.
Syllabus
1. Insurance and the Insurance Industry
Definition of the basic concepts of insurance and the insurance industry. The importance of insurance for individuals, businesses, and society. Historical development of the insurance industry in the Czech Republic after 1989 and its legislative milestones. The impact of EU accession and the recodification of private law. The legal framework of insurance and its impact on practice.
2. The Insurance Market
Definition of the insurance market and its relationship to the financial market. Structure – the non-life (general) and investment insurance market. Market participants and the role of the Czech National Bank in supervision. The importance of reinsurance, creation and investment of technical reserves. Insurance companies as institutional investors.
3. Indicators of the Non-life Insurance Market
Absolute and relative indicators for market evaluation. Ratio indicators based on gross written premiums – growth rate, insurance penetration, market shares, and the ratio of life to non-life insurance. Quantitative analysis and comparison with current market developments.
4. Risk Management and Insurance Risk
The nature of risk and its management within a business. The risk management process – identification, analysis and assessment of risks, their control, and financial elimination of consequences. Distinction between risk and peril, insurable risk and insured peril. Conditions of insurability of risks. The practical role of risk management in decisions on concluding an insurance contract and transferring insurable risks to the insurer.
5. Insurance Premium
The premium as the price of insurance protection and the main source of an insurer’s income. Its link to risk and costs, and the basic factors influencing its level. The structure of gross premium and the importance of pricing for the functioning of the insurance market.
6. Regulation and Supervision in Insurance
The essence and importance of regulation and supervision of the insurance market. Regulation as the setting of rules of operation, supervision as the control of their observance. Objectives of regulation – client protection, system stability, and prevention of insurer failures. The role of the Czech National Bank as supervisory authority. Insurers’ solvency and its regulation within the frameworks of Solvency I and Solvency II. The importance of reinsurance for financial stability and links to the global financial market.
7. Insurance and Its Classification
The essence of insurance as a financial instrument, a service, and a legal relationship. Basic classifications – commercial and non-commercial (social) insurance. Other criteria: compulsory, voluntary, statutory; life and non-life; indemnity and fixed-sum insurance. Insurance products – insurance of persons, property, and liability; design based on named perils or all risks coverage.
8. Insurance Benefits and Forms of Insurance
Insurable interest as the basis for concluding insurance. Insurance benefits as compensation in the event of an insured event. Basic forms of insurance – indemnity and fixed-sum. Deductibles as a complementary element influencing the amount of benefits.
9. Non-life Insurance and Its Basic Types
Characteristics of non-life (general) insurance and its classification. Main groups of products – insurance of persons, property, financial losses and guarantees, and liability insurance. Practical examples of the most common forms – property insurance, business interruption insurance, and liability insurance. The importance of precise definition of the subject matter of insurance and policy conditions.
10. Life Insurance and Its Basic Types
Characteristics and functions of life insurance – protection, savings, and investment. Basic forms: term life insurance, endowment insurance, and whole life (mixed) insurance. Reserve-forming life insurance – traditional (capital) and unit-linked. Riders (disability, accident, critical illness) and key concepts – surrender value, fees, exclusions. The importance of the insured’s health condition when concluding a contract.
11. Bancassurance
The essence and principle of bancassurance as the integration of banking and insurance services. Main models of cooperation – distribution agreements, partial integration, and holding structures. Benefits for banks, insurers, and clients. The development of bancassurance in Europe and in Czech practice. Current trends – digitalization, embedded insurance, ESG factors, and the development of digital ecosystems.
Literature
    required literature
  • PŘEČKOVÁ, Lenka. Pojišťovnictví: Distanční studijní text. Karviná: Slezská univerzita v Opavě, Obchodně podnikatelská fakulta v Karviné, 2025. info
    recommended literature
  • VÁVROVÁ, E., 2014. Finanční řízení komerčních pojišťoven. Praha: Grada. ISBN 978-80-247-4662-3
  • DUCHÁČKOVÁ, E., 2015. Pojištění a pojišťovnictví. Praha: Ekopress. ISBN 978-80-87865-25-5
  • SMEJKAL V. a K. RAJS, 2006. Řízení rizik ve firmách a jiných organizacích. Praha: Grada. ISBN 80-247-1667-4
Teaching methods
Lecture, seminar, text work, teaching through case studies, group discussions and group problem-solving, application of practical examples, analysis of insurers’ annual reports, analysis of insurance products and policy conditions, navigation on websites, and summary self-tests in the SU Information System.
Assessment methods
2 mid-term tests (2 × 15% = 30% of the grade), individual assignment (10% of the grade), written exam (60% of the grade).
Language of instruction
Czech
Further comments (probably available only in Czech)
Study Materials
The course can also be completed outside the examination period.
Teacher's information
Activity Difficulty [h]
Ostatní studijní zátěž 95
Přednáška 26
Seminář 13
Zkouška 40
Summary 174
The course is also listed under the following terms Winter 2014, Winter 2015, Winter 2016, Winter 2017, Winter 2018, Winter 2019, Winter 2020, Winter 2021, Winter 2022, Winter 2023, Winter 2024.
  • Enrolment Statistics (recent)
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