Thursday, 27 July 2017

mf0018 smu mba summer 2017 (oct/nov 2017 exam) IVth sem assignment

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DRIVE summer 2017
PROGRAM MBA
SEMESTER 4
SUBJECT CODE &
NAME
MF0018 & INSURANCE AND RISK MANAGEMENT

1. Explain price risk and its types. Explain Risk management methods
Explanation of price risk and types
Explanation on risk management methods

Answer: Price risk
Price risk represents the uncertainty about the magnitude of cash flows because of the probable changes in the input and output prices. Output price risk stands for the risk of changes in the prices which an organization may ask for its goods and services. Input price risk means the risk of changes in the


2. An organization is a legal entity which is created to do some activity of some purpose. There are elements of a life insurance organization. Explain the elements of life insurance organization.
[Important activities-2
Internal organization-3
Distribution system-2
Functions of the agent-3]

Answer: Important activities
         Procuring applications or proposals from prospective buyers of life insurance.
         Scrutinizing and making decisions on the proposals for insurance. This is called underwriting.



3. Explain the doctrine of indemnity, doctrine of subrogation and warranties and its types and classification.
Explanation of doctrine of indemnity
Explanation of doctrine of subrogation
Explanation of warranties and its types and classifications

Answer: Doctrine of indemnity
The contract of marine insurance is in the nature of indemnity. In any situation the insured is not allowed to earn a

4. Give short notes on :
Evidence and claim notice.
Subrogation
Salvage

Answer: Evidence
To admit a claim, appropriate evidence related to the policy is needed. In marine insurance the policy is generally issued on mutual understanding and good faith of both the parties. However, at the time of claim, the insurer should satisfy itself about the information furnished by the insured. The value of subject matter, nature of the subject matter, warranties, insurable interest, etc., are some of


5. Explain the marketing mix (7 P’s) for insurance companies
Explanation on the marketing mix for insurance companies

Answer: Marketing Mix (7 P’s) for Insurance Companies
Marketing for insurance companies implies marketing insurance services with the objective to create a customer base and make profit by the means of customer satisfaction. This emphasizes on forming an appropriate marketing mix for insurance business for the insurance organization to sustain in the industry. The marketing mix is a conglomeration of marketing activities managed by an organization in order to meet the requirements of its targeted market to the greatest extent.


6. Explain the benefits of reinsurance. Elaborate on the application of reinsurance.
Benefits of reinsurance
Application of reinsurance

Answer: Benefits of Reinsurance
(i) Increase in risk-taking capacity
As the direct insurer can reinsure part of certain risks, it can therefore accept more of the original risk. It could


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