B.B.M Mangalore University-INSURANCE & RISK MANAGEMENT

VI SEMESTER
BM-351: INSURANCE & RISK MANAGEMENT
Objective: To acquaint the students with the aspects of Insurance Industry. And give an overview of managing risks.
UNIT I: Introduction to Risk Management:
Overview of Risk - Concept of Risk & definition
Types of Risk
Risk Management process - Risk Identification. Risk Analysis. Risk
12hrs.
UNIT-II: Introduction to Market risk & interest risk - Meaning of duration & rate risk - Derivations
Futures and forwards differences - valuation of futures. valuation of long and short forward contract. mechanies of buying and selling futures. margins.
using futures - specification of futures - commodity futures.. Index futures. Interest rate futures - Arbitrage opportunity (concepts in buy)
Swaps - Mechanies of Interest rate swaps - volatility of interest rate swaps - currency swaps - valuation of currency swaps
Options - types of options specification margin - factors affecting option pricing cell and put on non dividend paying stock - put cell effect of dividend - mechanies of options - stock option - option on Stock Index - Option on futures - Interest rate options.
12 hrs.
UNIT- III: Introduction to Insurance
Scope of Insurance. Principles of Insurance-Essentials of Insurance Contract. types of Insurance - life. General: Fire. Marine. Miscellaneous-Distinguishing features of Insurance Contract. Function of Insurance Company dept.
Structure of Insurance Industry and players, economies of Insurance Business/value chain analysis. Regulation of Insurance and IRDA. 12 hrs.
UNIT-IV -INSURANCE PRODUCTS AND PRICING
Terminology & basic concepts. design and development of life and non life Insurance products. (in brief), underwriting and
Basis of underwriting - objectives and principles behind underwriting - underwriting life and non life Insurance business - Introduction to pricing - Pricing and rating procedure -- Pricing objectives - Basic pricing methods - Principal rating procedures 12 hrs.
UNIT V - CLAIMS MANAGEMENT
Introduction to claims management-claim settlement in general Insurance-General guidelines for settlement of claims in case of Fire Insurance, Marine Insurance. Personal accident Insurance etc - claims management in life Insurance-Maturity claims-Documents required-Death claims-Implementation and monitoring of claim systems. 12 hrs.
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Total 60 hrs.
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BOOKS FOR STUDY &REFERENCE:
Fundamentals of Insurance - Dr. P.K.Gupta, Insurance Management - Anand Ganguly, Insurance and Risk Management - Dr. P.K.Gupta, Risk Management & Insurance - Williams, Smith &Young (MC Graw Hill International), Principles of Risk Management & Insurance - George E.Rejda (Pearson Education) 2005, Risk & Insurance-Skipper (Mc Graw Hill) 2005, Options & Futures-Vohra & Bagri (TMH) Option & Futures - Hull