97312 - INSURANCE AND FINANCIAL LAW

Learning outcomes

The course is aimed at giving the main features of Insurance Law, at EU level, from the insurance company perspective. Role of Insurance as a key player of the financial market is stressed, through the analysis of the evolution of the insurance industry. At the end of the course students will be able to fully understand the Law related to the insurance business as opposed to the banking one, to manage the main legal framework of the insurance sector with reference to asset/liabilities balance, solvency capital requirements, risk management, corporate governance, group undertaking and financial conglomerates. Students will be able to draw consequences from the interaction of different regulatory bodies and supervising authorities to the end of reaching a level playing field, to estimate the impact of different sets of legal rules on the insurance company, to evaluate the insurance companies’ role on systemic financial stability and the dynamics of the insurance sector facing global crisis. Through a focus on the impact of digital transformation on the insurance sector considering the pivotal role of Insurtech, students will learn the new legal challenge of the insurance business, namely the evolution towards personalised insurance exploiting big data and AI.

Course contents

The course will provide an overview of the different approaches and institutions available to identify the rules governing banking, financial and insurance relationships, given the existence of relevant differences in national legal systems. In this regard, it will provide an overview of the following topics:
- the regulation of financial conglomerates;
- the multi-level and multi-source model of the regulatory framework;
- the fundamentals of corporate governance and corporate compliance in financial institutions;
- special characteristics of the banking and insurance sectors in the light of systemic risk;
- the new regulation of the insurance market according to the Solvency II directive;
- the effects and characteristics of the 2007-08 global financial crisis;
- banking and insurance contracts;
- basic notions of Risk Management and Compliance.
- the single European market and third countries.
- supervision at national level and supervision of cross-border activities.
- insurance intermediaries.
- policyholder protection.
- international insurance programs.
Some insights on data protection and privacy in commercial disputes will also be provided, as well as on Fintech, Insurtech, smart contracts and blockchain.

Readings/Bibliography

Mandatory: Mads Andenas, Renzo G. Avesani, Paola Manes, Francesco Vella, Philip R. Wood, Solvency II: a dynamic challenge for the insurance market, 2017;

pp. 13-14, 17-22, 29-31, 49-73, 79-85, 89-90, 93-121, 175- 187.

Teaching methods

The teaching method will always include a brief lecture-style introduction and subsequent discussion. A Socratic method will be adopted primarily and students will be expected to prepare for and participate regularly in individual or group discussions in class. The course also relies on a case study method.

Assessment methods

Grades for attending students will be based on participation in class discussion, as well as a written exam (written exam grade and participation will average each other). Attending students: closed book written exam (5 MC questions, 15 min.) on the above listed parts of the book. Attendance will be monitored through daily signature requirements.
Non-attending students' grades will be based on the written exam only. The closed book written exam (30 min.) will consist of 10 multiple-choice questions addressing the above listed chapters from the book "Solvency II: A Dynamic Challenge for the Insurance Market". 
Each correct answer is worth 3 points, each missing or incorrect answer is worth 0 points. Only students who answer correctly at least 3/5 questions (attendign students) or 6/10 (non attending students) will pass the exam.

Teaching tools

Excerpts, handouts, slides, contracts, case law, and documents found on online materials accessed through Paola Manes' website. Videos, clips, and films viewed in class.
Students who need compensatory tools due to disabilities or learning disabilities (SLD) should inform the teacher of their needs. They will then be referred to their liaison to arrange for the adoption of the appropriate devices.

Office hours

See the website of Paola Manes