Contact Hours : 30 hrs
Credit : 1 Credit
Prerequisite : None
Instructor : S.K. Mukerji
1. Course Objective:
It is a foundational course on Life Insurance Management. The focus of the course is to enable management students to be aware of, assimilate and practice the vital Technical, Legal, Financial, Marketing and Administrative aspects of Life Insurance Management in a COMPETITIVE ENVIRONMENT.
2. Course Content:
The various topics and their content elucidated in course outline are so devised as to give enough insights in the various facets listed above so that students acquire confidence, knowledge & skills to become capable managers in a Life Insurance Organization.
3. Study Material:
Each Topic will have a supporting reading material, which needs to be studied carefully by the students.
4. Assessment & Grading:
It will be based on the following activities:
(i) End Term Examination : 50% marks
(ii) 2 Quizzes : 40% marks
(iii) Classroom Participation : 10% marks
Lectures, Interactive Sessions & Case Studies.
Each Session Time: 75 minutes
(i) Life Insurance Industry in India
(ii) Basic Concepts of Life Insurance
Pre-nationalisation / Nationalised Monopoly / Opening-up & Present Status.
(a) Historical Perspective of Life Insurance.
(b) Introduction to Insurance
Session 2 to 6:
Topic: Technical aspects of Life Insurance
(i) Elements of Actuarial Science.
(ii) Construction & Updation of Mortality Tables.
(iii) Pricing of Products – Various Components viz., Mortality, Interest, Expenses and other contingencies and their impact.
(iv) Policy Reserves & its significance.
(a) Compound Interest
(b) Valuation of Annuities Certain.
(c) Mortality Table.
(d) Pricing of Life Insurance Products; Annuities, Assurance, Premiums
(e) Policy Values.
Session 7 to 8:
Topic: Legal aspects of life Insurance
(i) Life Insurance Contracts – Special Features
(ii) Principle of Uberrima Fide (utmost good faith) & warranty – with case laws.
(iii) Section 45 of Insurance At 1938 – Its impact on underwriting / claim settlements in Life Insurance – Case laws.
(iv) Consumer Protection Act / IRDA guidelines for consumer care.
(a) Law of Contracts
(b) Life Insurance policies as property(actionalte claims)
(c) Consumer protection act
(d) IRDA Notification (Protection of Policyholders Interest) dated 26.04.2002 & Amendments dtd. 16.10.2002
(e) IRDA (obligations of Insurers to rural or social sectors) reg,2002
Session 9 to 11:
Topic: Risk Management
(i) Core Concepts
(ii) Brief Overview of Structure & Components of Insurance Sector.
(iii) Operative aspects of the structures highlighting the interplay of components in management or risk of insurer.
(iv) Insurance Company – Exposed to diversity of risks. Analysis & Management aspects of each of them in the backdrop of competitive forces.
(v) Risk Management – Processes. Use of quantitative methods; IT support and some basic tools.
(a) Introducing Risk Management
(b) Diversity of Risk in Life Insurance Business.
(c) Specific Risk Category by Source.
(d) Management of Investment Risks.
(e) Tools of Risk Management.
Session 12 :
Topic: Underwriting of Life Insurance Risks.
Read: Selection & Classification of Risks.
Topic: Re-insurance – A tool of risk management for Insurers.
Read: Transfer of Risk – Reinsurance.
Session 14 & 15:
Topic: Basic concepts of non-life Insurance
Read: Training Program on General Insurance.
Topic: Actuarial Valuation of Assets / Liabilities.
Concept of Solvency & Surplus as applied to Life Insurance (only fundamentals).
(a) Actuarial Investigations – Why & How?
(b) IRDA Reg. Dated 14.07.2000 (Assets, Liabilities & Solvency Margin of insurers)
Session 17 to 18:
(1) Various lines of non life insurance business –personal/corporate
(2) Pricing issues in non life business
Topic: Marketing Issues in Life Insurance
(i) Recap of Marketing Principles
(ii) Services Marketing – Distinctive Features
(iii) Life Insurance Marketing.
Read: Marketing Life Insurance Products
Topic: Identification & Analysis of Life Insurance needs/Designing of life insurance products.
Read: Identifying Customers & his needs in Life Insurance.
Topic: Channels of Distribution in Life Insurance Markets.
(a) Distribution Channels
Topic:Finacial Controls & Accounting aspects in Life Insurance company.
Read: IRDA Regulation dated 14.08.2002 (Preparation of Financial Statements, etc.)
Topic: Settlement of Life Insurance Claims.
Significance of Nomination / Assignment as per Section 38/39 of Insurance Act 1938 & Processes involved.
(a) Nomination / Assignment
Topic: Tax Planning in Life Insurance.
Read: Tax Laws & Insurance.