4004520: MasterPROJECT 1: Development of a Financing Structure for Claims

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Semester:WS 15/16
Scheduled in semester:3
Semester Hours per Week / Contact Hours:32.0 L / 24.0 h
Self-directed study time:126.0 h

Module coordination/Lecturers


Master's degree programme in Banking and Financial Management (01.10.2008)



Company: Liechtenstein Life Assurance AG
Parties involved:
- Insurance Company, as producer of life insurance contracts;
- Buyer of life insurance contracts,
- Broker, connecting the insurance company and the buyer.

When the insurance contract is signed, the insurance company pays a commission to the broker. This commission assumes a minimum contract duration. As long as this minimum contract duration is not achieved, the insurance company has a claim against the broker because of the initial overpayment.
The company is continuously evaluating and controlling these claims.
The claims reduce the liquidity of the insurance company. Thus the insurance company has an interest to liquidate these claims. One alternative would be to sell these claims to a bank or to receive a financing for these claims.
In a first step the group has to describe in detail the processes and the valuation approach within the company (data collection, money transfer, collaterals, controlling and risk management, reporting).
The challenge of this project group is to develop a written report and presentation slides, describing the economic value of these claims, in order to explain the bank the economic background of this situation. The risk has to be explained a valuation approach to be developed. Drivers on claim value should be uncovered.
The project group should actively explore alternative financing approaches for commission payments, Asset Backed Securities just one of them.

- German language (concept for banks in the German speaking area)
- Max. 4 students

Supervisor: Prof. Dr. Marco J. Menichetti


Exam Modalities

  • Assignment (depending on the project an additional presentation may apply) (100%)
  • Obligatory class participation


Expected group size: 3-4 students.