16MBAFM402 Risk Management and Insurance syllabus for MBA


Unit-1 Introduction to Risk Management and Risk Identification 10 hours

Introduction to Risk Management and Risk Identification: Risk-Risk and Uncertainty-Types of Risk-Burden of Risk-Sources of Risk-Methods of handling Risk-Degree of Risk-Management of Risk

 

Risk Management-Risk Management Process-Identification Loss exposures-Analyzing Loss exposures-Objectives of Risk Management-Select the Appropriate Risk Management Technique- Implement and Monitor the Risk Management Program-Risk Management by Individuals and Corporations-Risk Management objectives-Need for a Rationale for Risk Management in Organizations- Understanding the cost of Risk-Individual Risk Management and the Cost of Risk-Risk Management and Societal Welfare.

 

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

Unit-2 Risk Measurement 8 hours

Risk Measurement-Evaluating the Frequency and Severity of Losses-Risk Control-Risk Financing Techniques-Risk Management Decision Methods-Pooling Arrangements and Diversification of Risk.

 

Advanced Issues in Risk Management: The Changing Scope of Risk Management-Insurance Market Dynamics-Loss Forecasting-Financial Analysis in Risk Management --Decision Making- Other Risk Management Tools

Unit-3 Introduction to Insurance 8 hours

Introduction to Insurance Risk and Insurance- Definition and Basic Characteristics of Insurance-Requirements of an Insurable 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 in India-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 and powers of IRDA-IRDA Act 1999-IRDA regulations for general insurance-reinsurance, life insurance, micro insurance, licensing of insurance agents, registration of insurance companies and protection of policyholders interest.

Unit-4 Life Insurance 8 hours

Life Insurance Basics of Life Insurance-Growth of Actuarial Science-Features of Life Insurance-Life Insurance 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 Back Policies-Unit Linked Plans.

 

Annuities-Need of Annuity Contracts, Annuity V/s Life Insurance, Classification of Annuities.

Unit-5 General Insurance 12 hours

General Insurance-Laws Related to General Insurance-General Insurance Contract-General Insurance 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 – Personal Accident Policy – Child Welfare Policy-Employee Group Insurance – Features of Group Health Insurance – Group Availability Plan.

 

Fire Insurance-Essentials of Fire Insurance Contracts, Types of Fire Insurance Policies, Fire Insurance Coverage.

 

Marine Insurance-Types of Marine Insurance – Marine Insurance principles Important Clauses in Marine Insurance– Marine Insurance Policies –Marine Risks-Clauses in Marine Policy.

 

Motor Vehicles Insurance-Need for Motor Insurance, Types of Motor Insurance, Factors to be considered for Premium Fixing.

Unit-6 Management of Insurance Companies 10 hours

Management of Insurance Companies Functions and Organization of Insurers- Types of Insurance Organization, Organizational Structure of Insurance Companies-Functions of Insurers.

 

Underwriting-Principles of Underwriting, Underwriting in Life Insurance, Underwriting in nonlife Insurance.

 

Claims Management-Claim Settlement in General Insurance-Claim Settlement in Life Insurance.

 

Insurance Pricing-Insurance Cost and Fair Premiums, Expected Claim Costs, Investment Income and the timing of claims Payments, Administrative Costs, Profit Loading, Capital Shocks and Underwriting Cycles, Price Regulation.

 

Insurance Marketing: Marketing of Insurance Products, Critical Success factors for Insurance Players, 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 insurance selling.

 

  • Select insurance company of your interest and study the risk management procedures followed by that company.

 

  • Analyze risk management techniques used by the banks, cement companies, automobile companies.

 

  • Visit the IRDA website and identify the rules and regulations governed by IRDA with respect to Marketing of insurance in rural markets

Last Updated: Tuesday, January 24, 2023