The goal of the Lab is to provide students with the practical skills to define e financial or insurance product.
Course Prerequisites
By developing case studies with the support of primary financial market operators, the student will be able to apply the skills provided in the Courses of regulation and governance of financial intermediaries and the analysis and evaluation methodologies learned in the mandatory quantitative courses. Then, it is recommended, to have already attended the these courses.
Teaching Methods
With the support of leading market operators, students will work on the definition and monitoring of financial and insurance products, retracing the product governance process and, in particular, developing profit test and value for money analyzes of the products.
Assessment Methods
Students will be asked to solve and to present case studies. The evaluation wil be based on: the ability to contextualize the models and methodologies learned; the quality of the exposure, including the ownership of the specialist language; depth of analysis and critical reasoning. The mark is cast in thirtieth. The exam will be considered to be passed by a minimum vote of 18/30. The committee reserves the right to award honour in case of exhaustive responses that demonstrate high analytical skills and critical sense.
Contents
The Lab is organized as follows: - description of the process to design and implement a financial or insurance product with focus on the specific roles and responsibilities of the Manufacturer and of the the Distributor; - product concept: analysis of customer needs, new investment or protection themes, etc.; - feasibility analysis: impacts on the organizational structure, impacts on operating systems, regulatory compliance; - product design: analysis and definition of demands & needs, identification of the most significant indicators (KPI and KRI) based on the characteristics of the product, choice of the most suitable evaluation methodologies, etc. - evaluation of the risk-return profile of the product: on customer side, verifying whether and for which type of customers (Target Market) the product generates value (Value for Money); on Intermediary side, verifying the impact in terms of profitability (Profit Test) and in terms of risk (impact on the capital requirements of the banking or insurance intermediary), business case and economic evaluations. - analysis of the product implementation and distribution phases. - reporting: regulatory information and internal reporting.
