Business Studies · 3rd Year

Active learning ideas

Insurance and Risk Management

This topic uncovers the world of insurance, a vital tool we use to manage the financial curveballs life throws at us. We will explore how paying a little now can save us from a huge financial shock later.

• NCCA Curriculum Specifications
• Junior Cycle Business Studies Specification: Personal Finance Strand, LO 1.7

• 25–50 min
• Pairs → Whole Class
• 4 activities

Activity 01

• Hot Seat
• 40 min · Small Groups

Risk Assessor for a Day

Students keep a diary for 24 hours, noting down every potential risk they encounter, from losing their bus fare to a football breaking a window. In groups, they then categorise these risks and decide which ones could be insurable.

Explain the purpose of insurance using the principle of 'pooling of risk'.

Facilitation Tip

Encourage students to think beyond the obvious and consider personal, property, and financial risks.

What to look for

Use mini-whiteboards for a quick-fire quiz where students must identify which insurance principle applies to a series of short scenarios.

• Apply
• Analyze
• Evaluate
• Social Awareness
• Self-Awareness

Activity 02

• Jigsaw
• 50 min · Small Groups

Insurance Policy Jigsaw

Divide the class into 'expert' groups for motor, home, and health insurance, providing each with a simplified sample policy document. After analysing their document, students are rearranged into new groups with one of each 'expert' to teach the others about their policy type.

Compare the key features of motor insurance, home insurance, and health insurance.

Facilitation Tip

Provide a comparison chart template for students to fill in, focusing on cover, exclusions, and excess.

What to look for

Students answer a past Junior Cycle exam question that provides a case study and requires them to explain the relevant principles and calculate a claim settlement.

• Understand
• Analyze
• Evaluate
• Relationship Skills
• Self-Management

Activity 03

• Hot Seat
• 30 min · Pairs

Case Study Court

Present students with short scenarios where an insurance principle has been breached (e.g., a person not disclosing a medical condition for health insurance). Students act as a panel to decide if the claim should be paid, justifying their decision using the correct principle.

Justify the importance of full disclosure when applying for an insurance policy.

Facilitation Tip

Use scenarios with some ambiguity to promote deeper discussion and debate.

What to look for

Students use a traffic light system (red, amber, green) to rate their own understanding of each of the five principles of insurance and the main types of insurance.

• Apply
• Analyze
• Evaluate
• Social Awareness
• Self-Awareness

Activity 04

• Hot Seat
• 25 min · Individual

Complete the Proposal Form

Give students a blank, simplified motor insurance proposal form. They must complete it for a fictional 18-year-old character, considering what 'material facts' would need to be disclosed to adhere to the principle of utmost good faith.

Explain the purpose of insurance using the principle of 'pooling of risk'.

Facilitation Tip

Afterwards, have students peer-review the forms to see if any important information was missed.

What to look for

Use mini-whiteboards for a quick-fire quiz where students must identify which insurance principle applies to a series of short scenarios.

• Apply
• Analyze
• Evaluate
• Social Awareness
• Self-Awareness

A few notes on teaching this unit

Start with relatable, student-centred examples of risk before introducing formal terminology. Use visual aids like diagrams to explain the 'pooling of risk'. When covering the principles, anchor each one to a clear, simple story or case study to aid memory and application.

By the end of these activities, students will be able to explain the core principles of insurance and confidently compare common policies, making them more informed future consumers.

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Watch Out for These Misconceptions

• Insurance is a waste of money if you never make a claim.

  Insurance is about buying peace of mind and financial security. The premium you pay is a small, certain cost to protect you against a large, uncertain loss. It's a shared fund where everyone contributes so that those who are unlucky can be compensated.

• If your house burns down, the insurance company will give you money to build a bigger, better one.

  This is incorrect due to the principle of indemnity. Insurance aims to put you back in the same financial position you were in immediately before the loss, not to allow you to make a profit from the misfortune.

• You only need to tell the insurance company what they specifically ask on the form.

  The principle of utmost good faith requires you to disclose all 'material facts', which is any information that could influence the insurer's decision to offer you cover or determine the premium. Withholding relevant information, even if not explicitly asked, can void your policy.

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Methods used in this brief

• Hot Seat
• Jigsaw