Course Objective: The insurance sector has come a full circle during last 25 years. From private to the public regime and back to private regime has indeed been a long, arduous road for insurance sector. Though insurance sector as such has not been privatized and only some private players have been allowed to operate in this sector, last couple of years has witnessed tremendous growth, mainly propelled by the private players.
It is felt that during the current financial melt down the insurance sector may be the only financial sector which is expected to be least affected by the ensuing recession and may in fact provide some stability to the financial activities . Resultantly the sector promises to reduce the ill effects of recession by ensuring employment at normal levels.
This course primarily tries to capture the essence of insurance as a system of transfer of risk by the business enterprise / individual to insurance set up as a mechanism of transfer of risk and resultant financial stability.
By the end of the course, the students is expected to
1. Understand the risk management process
2. Develop a broad understanding of insurance as a system of managing risks of property as well as life.
3. Understand the utility of in the various products of general & life insurance companies towards national economic welfare
4 Appreciate the needs for & consequences of liberalization of insurance sector
Session- wise Course Outline
Module A. Risk Management & Insurance
1. Risk Management & Insurance Risk, peril & hazard, types of risk, Insurance-purpose, need ,basic characteristics, subject matter; , insurance as a social security tool, role of Insurance in nation building activities; adverse selection & hedging
Readings: Risk Management & insurance (Ch-1) by George E. Rejda
2. Risk Management Process Meaning & objectives of risk management, Risk management process- personal & corporate risk management, corporate risk attitudes; Insurance as a method of risk transfer.
Readings:
i. Risk Management : Insurance Institute of India ii. Risk Management & insurance (Ch-1) by George E. Rejda 3. Enterprise Risk Management
Readings: Risk Management & Insurance: O.P. Gupta, Himalaya Publishing house
Module B. Risk Management for Property Risks
4. & 5. Types of property exposed to fire risk, transit risk, accident & theft
Readings:www.irdaindia.org
Module C. Management of the risk of dying too early;
Risk of death, disability & disease
6. Need for life insurance, Human life value, Life Insurance products- term insurance, whole life, endowment, money back, ULIP,
Practice of life Insurance; Insurance institute of India
Module D. Managing the Risk of Living Too Long
7. Risk of old age: financial & health risks: Annuities & Pension
Pension & Reforms: IRDA Report 2001 from the book Insurance Products (including Pension Products) IIBF book page 232-245
Module E . Life & Health Actuarial Principles 8. Pricing Life insurance products Readings: Life & health insurance Actuarial Principles, Black & Skipper, PHI Page 693-718
9. Insurance regulatory Framework Readings: www.irdaindia.org 10. Paper presentations
Evaluations:
End Term: 30 marks
Presentations: 10 marks
Quiz: 10 marks
Created By: Lingaraj Pattanaik on 11/21/2008 at 11:54 AM Category: PGDM-II Doctype: Document