Insurance Market Simulation
The attached materials may be used to provide an opportunity for students to learn how insurance markets work and how insurance company's profits and losses are generated in a competitive market. A target is undergraduate students studying actuarial science, insurance and risk management, finance and economics. Knowledge of insurance and statistics may help. The good size of students is about 30, which may be split into 10 groups (9 insurer groups and 1 market operator group). Expected time for this game is about 2 hours. All are done by students.
Regardless of extensive use of random numbers, students' performances are largely determined by their preparation, e.g., understanding of the rule of the game, just like how the market works.
Insurance market simulation - instruction
Premium & investment reporting sheet
Market operator's instruction (example)
Market operator's calculation sheet (example)