14MBAFM408 Risk Management and Insurance syllabus for MBA


Unit-1 8 hours

Introduction to Risk Management: Risk-Risk and Uncertainty-Types of Risk-Burden of Risk-Sources of Risk-Methods of handling Risk-Degree of Risk-Management of RiskRisk Management-Risk Management Process-Identification Loss exposures-Analyzing Lossexposures-Objectives of Risk Management-Select the Appropriate Risk Management Technique-Implement and Monitor the Risk Management Program-Risk Management by Individuals andCorporations-Risk Management objectives-Need for a Rationale for Risk Management inOrganizations- Understanding the cost of Risk-Individual Risk Management and the Cost ofRisk-Risk Management and Societal Welfare

Unit-2 6 hours

Risk Identification-Business Risk Exposures-Individual Exposures-Exposures of PhysicalAssets -Exposures of Financial Assets -Exposures of Human Assets -Exposures to LegalLiability - Exposure to Work-Related Injury-Basic concepts form probability and Statistics.

Unit-3 8 hours

Risk Measurement-Evaluating the Frequency and Severity of Losses-Risk Control-RiskFinancing Techniques-Risk Management Decision Methods-Pooling Arrangements andDiversification of Risk.Advanced Issues in Risk Management: The Changing Scope of Risk Management-InsuranceMarket Dynamics-Loss Forecasting-Financial Analysis in Risk Management --Decision Making-Other Risk Management Tools

Unit-4 8 hours

Introduction to InsuranceRisk and Insurance- Definition and Basic Characteristics of Insurance-Requirements of anInsurable Risk-Adverse Selection and Insurance-Insurance vs. Gambling Insurance vs. Hedging-Types of Insurance-Essentials of Insurance Contracts.Indian Insurance Industry -Historical Framework of Insurance, Insurance sector Reforms inIndia-Liberalization of Insurance Markets-Major players of Insurance.Regulation of Insurance- Insurance Act 1938- eligibility-Registration and Capital requirement-Investment of assets-Approved investments-Licensing of insurance agents- IRDA-Duties andpowers of IRDA-IRDA Act 1999-IRDA regulations for general insurance-reinsurance, lifeinsurance, micro insurance, licensing of insurance agents, registration of insurance companiesand protection of policyholders interest.

Unit-5 8 hours

Life InsuranceBasics of Life Insurance-Growth of Actuarial Science-Features of Life Insurance-LifeInsurance Contract-Life Insurance Documents-Insurance Premium Calculations.Life Insurance Classification-Classification on the Basis –Duration-Premium Payment-Participation in Profit-Number of Persons Assured-Payment of Policy Amount-Money BackPolicies-Unit Linked Plans.Annuities-Need of Annuity Contracts, Annuity V/s Life Insurance, Classification of Annuities

Unit-6 10 hours

General Insurance-Laws Related to General Insurance-General Insurance Contract-GeneralInsurance Corporation(GIC)-Performance Private and Public General insurance companies.Health Insurance-Individual Medical Expense Insurance – Long Term Care Coverage –Disability Income Insurance – Medi-claim Policy – Group Medi-claim Policy – PersonalAccident Policy – Child Welfare Policy-Employee Group Insurance – Features of Group HealthInsurance – Group Availability Plan.Fire Insurance-Essentials of Fire Insurance Contracts, Types of Fire Insurance Policies, FireInsurance Coverage.Marine Insurance-Types of Marine Insurance – Marine Insurance principles Important Clausesin Marine Insurance– Marine Insurance Policies –Marine Risks-Clauses in Marine Policy.Motor Vehicles Insurance-Need for Motor Insurance, Types of Motor Insurance, Factors to beconsidered for Premium Fixing.

Unit-7 8 hours

Management of Insurance CompaniesFunctions and Organization of Insurers- Types of Insurance Organization, OrganizationalStructure of Insurance Companies-Functions of Insurers.Underwriting-Principles of Underwriting, Underwriting in Life Insurance, Underwriting in nonlifeInsurance.Claims Management-Claim Settlement in General Insurance-Claim Settlement in LifeInsurance.Insurance Pricing-Insurance Cost and Fair Premiums, Expected Claim Costs, InvestmentIncome and the timing of claims Payments, Administrative Costs, Profit Loading, Capital Shocksand Underwriting Cycles, Price Regulation.Insurance Marketing: Marketing of Insurance Products, Critical Success factors for InsurancePlayers, Marketing Strategies in India.Practical Component• Analyze the insurance potential in India based on secondary data• Meet Insurance advisors. Agents and have a discussion on requirements of insuranceselling.• Select insurance company of your interest and study the risk management proceduresfollowed by that company.• Analyze risk management techniques used by the banks, cement companies, automobilecompanies.• Visit the IRDA website and identify the rules and regulations governed by IRDA withrespect to Marketing of insurance in rural markets

Last Updated: Tuesday, January 24, 2023