Merchant Banking and Financial Services syllabus

Course Code: MF0018

Course Title: Insurance and Risk Management  (4 Credits)



Course Contents


Unit 1

Risk—an Introduction, interpretations of the term ‘risk’, types of business and personal risks, significance of risk management function within business organizations


Unit 2

Insurance and Risk - significance of insurance and risk, general structure of the insurance market, significant aspects of this industry


Unit 3

Reforms in Indian Insurance Industry- importance of the privatization of insurance industry, problems associated with public insurance enterprises, relation between insurance and economic growth.


Unit 4

Regulations Relating to Insurance Accounting and Management - framework for IRDA rules and regulations regarding general insurance investment in the country, role of financial reporting in managing insurance operations, significance of determining solvency margins.


Unit 5

Life Insurance - factors influencing the key functioning of insurance organizations insurable interest, role of riders in insurance policies


Unit 6

Non-life Insurance - elements of fire insurance contract and its ancillary features. Significance of marine insurance and its various policies, the role of rural insurance in making people’s lives better in rural India.


Unit 7

Non-life Insurance - II - types of motor insurance policies, critical aspects of aviation industry in the country, significance of liability insurance in India.


Unit 8

Functions and Organization of Insurers - components of the distribution system of life insurance companies in the country, role of agents in the life insurance sector in India, important activities carried out in a life insurance organization


Unit 9

Product Design and Development: Product development in the life and non-life insurance sectors in India, role of risk evaluation in the process of insurance product formation, future trends in the domain of insurance product design and development.


Unit 10

Insurance Underwriting - need for insurance underwriting, factors that affect the activities performed by the underwriter, steps involved in the process of insurance underwriting.


Unit 11

Claims Management: factors affecting the insurance claim management system, types of documents needed in various types of claims, meaning of ‘Causa Proxima’ in insurance claim settlement.


Unit 12

Insurance Pricing and Marketing - principles of insurance pricing and marketing, tools and techniques used in pricing individual life and health insurance


Unit 13

Financial Management in Insurance Companies and Insurance Ombudsman: importance of financial management in insurance companies, tools of managing expenses in the insurance companies, modes used by the insurance companies in channelizing their funds.


Unit 14

Reinsurance: reinsurance in the insurance sector. Areas of the application of reinsurance.


Unit 15

Information Technology in Insurance - application of information technology in the insurance sector, role of insurance companies in insurance security, contours of the future of insurance in rural areas.