Ship Finance and Marine Insurance

FIE460 Ship Finance and Marine Insurance

Autumn 2020

  • Topics

    Shipping, being one of the most international industries, is risky and highly capital intensive.  This course gives students a fundation to work with the financing, risk assessment and insurance of ships within lenders, project finance specialists, investment banks, private equity, marine insurers and shipping companies.  The course builds around two main topics:

    Shipping finance: How shipping companies fund their assets, i.e. their capital structure and sources; How ship finance providers evaluate their investments, i.e. credit analysis - including vessel valuation (collateral), earnings analysis (cashflow) and covenants.  We also cover how sustainable finance initiatives in shipping can be used to promote green shipping investments.

    Marine Insurance: How insurance companies and P&I Clubs indemnify shipping companies and financiers, including the structure of the marine insurance market; types of marine risks and underwriting (e.g. marine insurance policy coverage and data analytics for marine risk assessment); and claims handling in relation to, for instance, ship operations, persons and the environment.

  • Learning outcome

    The goal of the course is to teach students the principles and tools of ship finance and marine insurance.  Upon successful completion of the course, the student shall:

    Knowledge:

    • Understand methods in financial valuation for asset-based industries, both corporate finance and project finance
    • Understand the key elements (3Cs) in credit analysis of the shipping industry
    • Be familiar with marine insurance coverage and underwriting
    • Understand how ship finance and marine insurance can drive investment in a more sustainable global shipping industry

    Skills:

    • Perform asset valuations for Sale & Purchase transactions in shipping
    • Perform cashflow analysis for ships under different types of contracts
    • Build risk assessment models based on both traditional actuary theories and modern data analytics  

    Competencies:

    • Apply the knowledge and techniques of financial and insurance economics to specialized asset-based real-world cases.
    • Communicate with ship finance and marine insurance specialists using appropriate terminology
    • Communicate problems, methods and solutions from risk analyses both in writing and orally with specialists and the general public

  • Teaching

    Teaching consists of lectures, guest lectures from industry experts, case studies and student presentations. 

    Due to the ongoing COVID-19 situation, teaching will be flexible - onsite auditorium and online Zoom lectures. Video recorded lectures will be available after lectures. 

    Lectures are in English.  All teaching materials are in English.

  • Recommended prerequisites

    There are no formal prerequisites for the course, but students are expected to be familiar with basic concepts in discounting and net present value.

  • Requirements for course approval

    Course approval will be based on two elements: lecture participation and online quiz.

  • Assessment

    Group-based term paper. 

  • Grading Scale

    A - F.

  • Literature

    To be announced.

Overview

ECTS Credits
7.5
Teaching language
English
Semester

Autumn. Offered Autumn 2020 (first time).

Course responsible

Assistant Professor Haiying Jia, Department of Business and Management Science