FE Course name: INSURANCE ECONOMICS

Course Outcome:
The Course will enable the students :
(Module !)
i) To know the conceptual inputs related to Insurance Environment in india
i) To Understand implications of insurance legislation inIndia (Module i)
classes of business so
ii) To have insurance product knowledge - both life and non life for all
as to succeed in techno marketing assignment (Module l)
to Insurance (Module IV &V)
iv &v) To apply principles of economics and related mathematics
measurement including pricing
vi) Toget knowledge of underwriting acceptances and risks
(Module VI)
processes of Insurance which will be
vii)To have awareness of new techniques, products and
covered for remaining updated in the industry (Module V)

Module l:Introductory Inputs (7 Hrs.)

insurance, Insurance Environment,
Insurance concepts like, Historyand Advantages of
Contribution to economy, Latest Trends.
of Human Life Value.
Insurance value chain PESTLE Analysis, H'ubiverse's Theory
faith, Insurable interest and proximate
Principles Of Insurance like Indemnity, Utmost good
cause.
insurance, Reinsurance etc.
Basic terms like Risk, Perils, Hazard, Spread of Risk, Co

Module Il :Insurance Legislation (7 Hrs.)

Act.
Like Insurance Act, Indian Contracts Act, IRDAI
for insurers, Organizational Structure of
Latest IRDAI Regulations, nvestment Norms
insurance companies.

Module ll:Types Of Insurance Products (9 Hrs.)

Endowment, Term Assurance, Survival benefits,
Life Insurance policies like ULIPs, Double
death cover, Group Insurance Policies. Annuities,
types of Annuities, Life & Death
Key man Insurance, Whole life policies,
Immediate & Deferred Annuities.
including Mediclaim & OMP, Group Health
Various types of Health Insurance policies
illness, OPD covers, corona kavach etc.
Insurance Policies for Corporates etc. critical
Marine, Liability, PA,Engineering etc.
Various types of Nonlife Policies like Fire, Motor,

Module IV:Principles of Economics (6 Hrs.)

concepts like theory of probability, law of
Approach of Mathematics and basic actuarial
large numbers. loss.
underwriting, Maximum & Minimum probable
Mortality, Morbidity, Risk Based minimizationmeasures, contingency risks
Control of expenses, aiming at profitability, claim
v/sinvestment risks, sharing &Spreading risks.
Module V: Mathematics Of Insurance (9 Hrs.)
Special features of Insurance accounting , Investment function in insurance companies,
present value methods, compounding effect, perpetuities.
Discounted cash flow, sinking fund, life fund, yield, profitability, stationary population ,
select mortality tables, survival rates, morbidity concept, BMI, Valuation of surplus, Assets &
Liability.
Types of Financial Reserves in Insurance Companies Balance Sheets, Premium Loadings,
Pricing of insurance products etc. Bonus/Malus concepts, "Fair Value" of assets/liabilities,
life office valuations.
Concepts of Estate & Trading Profits, distribution of surplus, payment of dividends/bonus,
profit centers, management expenses, fresh/renewal expenses, solvency margins etc.

Module VI:Underwriting (7 Hrs.)

Definition, importance, profits generation , underwriting process , physical & moral
hazards.
Insurance &
Extras & discounts in rating structure, deductibles, underwriting factors in Life
General Insurance.
Risk inspection ,risk minimization, adverse selection,Use of riders, Loss sensitive pricing,
Embedded devices, comparison between Indian & Global underwriting practices and need
for contract certainty, proposal form.

Module VIl: Basic Concepts (5 Hrs.)

This module is for creating awareness for advanced course in insurance.
Reinsurance, claims settlement, coinsurance.
Insurance Products
Risk Management, Insurance Marketing and Intermediaries, Futuristic
"Insure Tech".

Readings:
Text BookS
Understanding General Insurance - PC James PCJ Value Media, Bengaluru
51 to IC 54,
Insurance Institute of India Books on various aspects of general insurance IC
IC71 to IC 74, IC 77.
Latest Edition, Prentice
Black, Kenneth Jr, Skipper, HaroldD Jr, Life & Health Insurance
Hall.
Rejda George E(2010)
Edition)
Principles of Risk Management and Insurance Prentice Hall (11"
William S Hein &
Zartman, Lester W (2003), Yale Readings in Insurance, Life Insurance,
Company
Operations, Global,
Bates, lan and Atkins, Derek (2009) Management of Insurance
Professional, Publications.
Research Papers :
" Underwriting Prudence -winning Strategy, MD Garde , BIMAQUEST, Vlurne 17, January
2017.
KPMG Reporttited "The Conneted EcosystemaNew Business Model for Insurance
"BIMAQUEtST" & "Pravartak" Publications of National Insurance Acadeny, Pune.
Asian insurance Review,Publication from Singapore.
The Journal, Insurance institute of India.

Webliography References :
https://www.insuranceinstituteofindia.com
" https://www.licindia. in
https://www.agriinsurance.gov.in/pmfby.aspx