Economics · Grade 10

Active learning ideas

Insurance and Risk Management

Active learning works well for insurance and risk management because students need to experience the mechanics of pooling, premiums, and claims to grasp abstract financial concepts. Role-playing and calculations make abstract risks tangible, while debates let students confront assumptions about fairness and responsibility in shared systems.

• Ontario Curriculum Expectations
• HS.EC.5.1

• 25–45 min
• Pairs → Whole Class
• 4 activities

Activity 01

• Simulation Game
• 45 min · Small Groups

Simulation Game: Risk Pool Game

Divide class into insurance companies and clients with varying risk profiles. Clients submit 'claims' based on drawn scenario cards; companies decide coverage using pooled class premiums. Groups tally profits or losses at end, discussing adjustments for fairness.

Explain how insurance functions as a tool for risk management.

Facilitation Tip

In the Risk Pool Game, assign each student a role card with a unique risk profile so they see how pooling distributes costs unevenly.

What to look for

Present students with three hypothetical scenarios: a student renting an apartment, a family buying a new car, and a retiree planning for healthcare costs. Ask them to identify the primary type of insurance needed for each scenario and one key term (e.g., premium, deductible) relevant to their decision.

• Apply
• Analyze
• Evaluate
• Create
• Social Awareness
• Decision-Making

Activity 02

• Case Study Analysis
• 30 min · Pairs

Pairs: Premium Calculator

Provide worksheets with risk factors and formulas. Pairs input data for hypothetical drivers, calculate premiums, then compare results and adjust for changes like safe driving discounts. Share findings in a class chart.

Analyze the economic principles behind different types of insurance (e.g., health, auto, life).

Facilitation Tip

For the Premium Calculator, provide Ontario-specific rate tables to ground calculations in real-world data.

What to look for

Facilitate a class discussion using the prompt: 'Imagine you are advising a friend who has just received their first paycheque and is considering buying a used car. What are the essential insurance considerations they should discuss with an insurance broker, and why are these important for their financial planning?'

• Analyze
• Evaluate
• Create
• Decision-Making
• Self-Management

Activity 03

• Case Study Analysis
• 40 min · Whole Class

Whole Class: Claim Debate

Present a real Canadian insurance case, like a disputed auto claim. Students vote on approval, then debate using economic principles. Facilitate with polls and evidence sharing to build consensus.

Evaluate the importance of insurance in personal financial planning.

Facilitation Tip

During the Claim Debate, assign roles like policyholder, insurer, and regulator to ensure balanced perspectives.

What to look for

On an exit ticket, ask students to define 'risk pooling' in their own words and provide one example of how it applies to a type of insurance they have learned about. Also, ask them to list one factor that might increase their personal insurance premium.

• Analyze
• Evaluate
• Create
• Decision-Making
• Self-Management

Activity 04

• Case Study Analysis
• 25 min · Individual

Individual: Policy Builder

Students design a personal insurance portfolio using online templates or handouts, listing needs, costs, and trade-offs. Submit with rationale, then peer review for completeness.

Explain how insurance functions as a tool for risk management.

What to look for

Present students with three hypothetical scenarios: a student renting an apartment, a family buying a new car, and a retiree planning for healthcare costs. Ask them to identify the primary type of insurance needed for each scenario and one key term (e.g., premium, deductible) relevant to their decision.

• Analyze
• Evaluate
• Create
• Decision-Making
• Self-Management

A few notes on teaching this unit

Teach insurance as a system of shared responsibility, not just a product. Avoid framing it solely as a purchase by emphasizing how premiums reflect collective risk. Use real Ontario case studies to show how location, age, and behavior directly impact costs. Research shows students retain concepts better when they see the human side of claims, so include testimonials or short videos of policyholders discussing their experiences.

Successful learning looks like students accurately calculating premiums, negotiating claims with evidence, and explaining how deductibles and exclusions shape policy decisions. You will see students adjusting variables in calculators to test risk factors and defending their policy choices during debates with clear reasoning.

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Watch Out for These Misconceptions

• During the Risk Pool Game, watch for students who believe insurance covers every possible loss without consequences.

  Use the game’s debrief to highlight how deductibles and exclusions reduce the pool’s total payout, forcing students to rethink full coverage.

• During the Premium Calculator activity, watch for students who assume all policies cost the same for similar risks.

  Have pairs compare their calculator results side-by-side and identify which variables (e.g., age, location) most affect the premium, then discuss why insurers use them.

• During the Policy Builder task, watch for students who dismiss insurance as unnecessary for young people.

  Ask them to calculate premiums for a 19-year-old driver versus a 45-year-old, using real Ontario rates, to show how early risks shape long-term costs.

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Methods used in this brief

• Simulation Game
• Case Study Analysis