FIUNPFRP Financial management of insurance companies

School of Business Administration in Karvina
Winter 2026
Extent and Intensity
2/1. 5 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
Supplier department: Department of Finance and Accounting – School of Business Administration in Karvina
Timetable
Thu 10:35–12:10 A406
  • Timetable of Seminar Groups:
FIUNPFRP/01: Thu 12:15–13:00 A406, L. Přečková
Prerequisites (in Czech)
FAKULTA(OPF) && TYP_STUDIA(N) && FORMA(P)
Course Enrolment Limitations
The course is also offered to the students of the fields other than those the course is directly associated with.
The capacity limit for the course is 30 student(s).
Current registration and enrolment status: enrolled: 15/30, only registered: 3/30
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 insurance companies as financial institutions and to explain their role in the market. Students will learn the principle of risk pooling, the differences between life and non-life insurance, the legislative framework in the Czech Republic and the EU, and the importance of regulation and supervision. The course develops the ability to identify and manage insurance risks, apply the principles of underwriting, premium calculation, and portfolio management. Attention is also given to the creation of technical provisions, their link to investment management and ALM principles, as well as to capital adequacy and the Solvency II framework. Students will understand the risk management system (ERM), compliance, and the three lines of defense model, learn to interpret insurers’ financial statements, and evaluate financial performance using ratios. The course also prepares students to identify new threats in insurance, especially climate and cyber risks, and to develop strategies for their effective management.
Learning outcomes
The student understands the fundamental concepts of insurance and insurance business, explains the principle of risk pooling, and distinguishes between life and non-life insurance. The student is familiar with the legislative framework of the Czech Republic and the European Union, understands the importance of regulation and supervision of the financial market, and assesses the impact of ESG factors. The student identifies insurance risks, explains the conditions of insurability, describes the risk management process, and applies the principles of underwriting, including the determination of the sum insured and insured value. The student masters the principles of premium calculation with regard to costs, technical provisions, profitability, and the Solvency II regulation. Student distinguishes between types of reinsurance and other forms of insurance insurance risk sharing and explains their relationship to the insurer’s solvency. The student understands the importance of technical provisions, explains their link to investment management, and applies the principles of asset-liability management (ALM) and the conservative investment policy of insurers. The student is familiar with the solvency framework, explains the difference between Solvency I and Solvency II, uses the concepts of SCR, MCR, own funds, and interprets the ORSA principle. The student masters the risk management system (ERM), classifies types of risks, understands the importance of the compliance system and the three lines of defense model. The student is able to interpret insurance company financial statements and calculate and interpret financial ratios to assess the insurer’s performance, linking them with risk management, provisions, and investment activity. The student identifies new threats in insurance, such as climate and cyber risks.
Syllabus
1. Insurance Company as a Financial Institution: A general overview of the functioning of an insurance company as a specific financial institution. The principle of risk pooling, insurance portfolio, life and non-life insurance. Creation and valuation of technical provisions, capital adequacy, and investment management within ALM. Risk management system, internal control, and reputation as part of financial stability. The role of the insurance company in the financial market, regulation, and supervision under the Solvency II regime.
2. Insurance Risk and Underwriting: Insurance risk and conditions of insurability. Sources of information for assessing insurance risk (statistics, registers, risk reports, models). The process of risk management in insurance companies: tools and phases of management. Underwriting in insurance companies: roles and types. Determination of the sum insured and insurance value within underwriting. The process of concluding an insurance contract.
3. Premium Calculation: The process of premium determination as a combination of actuarial calculations, business strategy, and regulatory requirements. The relationship of premiums to expected costs, creation of technical provisions, profitability, and long-term sustainability. Practical aspects – price elasticity, competitive environment, segmentation, and the principle of prudent business. Link to the European regulatory framework Solvency II.
4. Reinsurance and Other Forms of Insurance Risk Sharing: The principle of reinsurance and its importance for the insurer’s stability. Functions and forms of reinsurance, the relationship between collected premiums and retained risk, impact on solvency and claims development. The nature and importance of co-insurance and insurance pools as specific forms of insurance risk sharing.
5. Technical Provisions and Investment Management of Insurance: Companies
The creation of technical provisions as a fundamental tool for covering future liabilities of the insurer and their importance for solvency and credibility. The link between provisions and investment activities and the role of the insurer as an institutional investor. Asset-liability management (ALM) and the conservative character of insurers’ investment policies in the Czech Republic in line with regulatory requirements.
6. Regulation, Supervision, and Capital Adequacy of Insurance Companies:The importance of regulation and supervision of insurance companies. The role of the Czech National Bank (ČNB) and EIOPA. The evolution of the solvency framework from Solvency I to the Solvency II regime, the three pillars of regulation and their practical implications. Capital adequacy: SCR, MCR, structure of own funds (Tier 1–3). The difference between liquidity and solvency. The internal ORSA process as a link between risk management and capital. Current trends: ESG factors, digitalization of supervision, and regulation of new financial assets.
7. Risk Management (ERM) and Compliance: The risk management system in insurance companies and its importance for financial stability and credibility. Underwriting risk, risk typology, and methods of management. The compliance system and the three lines of defense model as the basis of the insurer’s internal control framework. Linking risk management with capital adequacy (SCR, ORSA) and legal embedding in Czech legislation in line with Solvency II.
8. Financial Performance of Insurance Companies: The importance and methods of assessing financial performance. Specifics of financial statements and financial analysis in insurance companies. Ratio indicators for evaluating financial health and their interpretation – combined ratio, expense and claims ratio, ROA, and others. Linking financial performance with risk management, provisions, and investment activity.
Literature
    required literature
  • Vávrová, E. (2014). Finanční řízení komerčních pojišťoven. Grada. ISBN 978-80-247-4662-3
    recommended literature
  • Ondruška, T., Brokešová, Z., Pastoráková, E., & Snopková, A. (2022). Riadenie rizík a poisťovníctvo. Wolters Kluwer.
  • PŘEČKOVÁ, Lenka. Pojišťovnictví: Distanční studijní text: Rozšířené a přepracované vydání. Karviná: Slezská univerzita v Opavě, Obchodně podnikatelská fakulta v Karviné, 2025. info
Teaching methods
Lecture, seminar, teaching through case studies, group discussions and group problem-solving, application of practical examples, analysis of financial statements, solvency reports and insurers’ annual reports, navigation on websites, and summary self-tests in the SU Information System.
Assessment methods
Assessment methods: 3 x mid-term test (40% of the grade), oral exam (60% of the grade).
Language of instruction
Czech
The course is also listed under the following terms Winter 2025.
  • Enrolment Statistics (recent)
  • Permalink: https://is.slu.cz/course/opf/winter2026/FIUNPFRP