17MBAFM402 Risk Management and Insurance syllabus for MBA

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.

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

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.

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.

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.

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.

RECOMMENDED BOOKS

• Risk Management and Insurance, Scott E. Harrington, Gregory R Niehaus, (2007), Second Edition, Tata McGraw Hill Publishing Company Limited, New Delhi.
• Introduction to Risk Management and Insurance, Dorfman, Mark S., (2008), 10th Edition, Prentice Hall India, New Delhi.
• Principles of Risk Management and Insurance, George E Rejda, (2009),Twelfth Edition, Pearson, New Delhi.
• Insurance and Risk Management, P.K. Gupta, (2010), First Edition, Himalaya Publishing House, Mumbai.
• Principles and Practice of Insurance, P. Periasamy, (2009), Second Edition, Himalaya Publishing House, Mumbai.

REFERENCE BOOKS:

• Risk Management and Insurance, C. Arthur Williams, Jr. Peter Young, Michael Smith, (2007), Eighth Edition, Tata McGraw Hill Publishing Company Limited, New Delhi.
• Risk Management and Insurance, James Trieschmann, Obert Hoyt, David Sommer, (2008), Twelfth Edition, Cengage Learning, New Delhi.
• Risk management and Insurance: New Perspective in a Global Economy”, Harold D. Skipper, W. Jean Kwon, (2008), First Edition, Wiley India, New Delhi.
• Fundamentals of Risk and Insurance, Emmett J. Vaughan, Therese Vaughan, (2007), First Edition, Wiley India, New Delhi.