Practices of General Insurance
The elective course “Practices of General Insurance” offers a detailed exploration of the operational, regulatory, and practical aspects of the general insurance industry. General insurance, also known as non-life insurance, covers a wide array of risks, including property, health, motor, and liability. This course is designed to provide students with a strong foundation in general insurance principles, policy management, risk assessment, and claims handling.
Key Learning Objectives
By the end of this course, students will:
- Understand General Insurance Fundamentals: Learn the principles and key aspects of general insurance.
- Explore Insurance Products: Gain knowledge about various general insurance products and their applications.
- Master Policy and Claims Management: Develop expertise in handling policy issuance, administration, and claims.
- Analyze Risk and Underwriting: Learn to evaluate and manage risks effectively.
- Understand Regulatory Compliance: Navigate the legal and regulatory frameworks of general insurance.
Core Topics Covered
- Introduction to General Insurance
- Definition and importance of general insurance.
- Role of general insurance in risk management and economic development.
- Types of general insurance: Property, health, motor, marine, liability, and travel insurance.
- Key differences between life and general insurance.
- Principles of General Insurance
- Fundamental principles: Utmost good faith, insurable interest, indemnity, contribution, subrogation, and proximate cause.
- Application of these principles in general insurance policies.
- Risk pooling and the concept of moral hazard.
- General Insurance Products
- Motor Insurance: Coverage for private, commercial, and third-party liabilities.
- Health Insurance: Individual and group health policies, cashless hospitalization, and critical illness coverage.
- Property Insurance: Fire, theft, and natural disaster coverage for homes and businesses.
- Marine Insurance: Cargo, hull, and liability insurance for shipping.
- Liability Insurance: Coverage for legal liabilities, professional indemnity, and product liability.
- Travel Insurance: Coverage for travel-related risks, including trip cancellations, medical emergencies, and lost baggage.
- Risk Assessment and Underwriting
- Role of underwriters in general insurance.
- Risk assessment techniques for various insurance products.
- Factors influencing underwriting decisions: Location, asset value, and usage.
- Role of actuaries in calculating premiums and reserves.
- Policy Administration
- Policy issuance and documentation processes.
- Renewal procedures and management of policy lapses.
- Endorsements and modifications to policies.
- Role of intermediaries: Agents, brokers, and aggregators.
- Claims Management
- Types of claims in general insurance: Cashless and reimbursement claims.
- Claims process: Filing, verification, and settlement.
- Role of claims adjusters and surveyors.
- Fraud detection and prevention in claims handling.
- Case studies on complex claims and dispute resolution.
- Regulatory Framework
- Key regulatory bodies (e.g., IRDAI, NAIC, FCA).
- Legal and compliance requirements for general insurers.
- Consumer protection laws and grievance redressal mechanisms.
- Impact of global standards like Solvency II on general insurance operations.
- Reinsurance in General Insurance
- Concept and importance of reinsurance.
- Types of reinsurance: Treaty and facultative.
- Risk-sharing and capacity-building through reinsurance.
- Role of international reinsurance markets.
- Emerging Trends in General Insurance
- Digital transformation: Role of insurtech, AI, and IoT in general insurance.
- Telematics in motor insurance and usage-based insurance (UBI).
- Parametric insurance for natural disasters.
- Sustainability and green insurance initiatives.
- Ethics and Customer Relationship Management
- Importance of ethical practices in general insurance.
- Strategies for improving customer satisfaction and retention.
- Handling customer grievances and complaints.
- Balancing profitability with social responsibility.
Skills Acquired
Students completing this course will develop:
- Comprehensive Product Knowledge: Understanding the features and functions of general insurance products.
- Risk Evaluation Skills: Ability to assess and manage risks for various insurance types.
- Claims Handling Proficiency: Expertise in managing claims efficiently and ethically.
- Regulatory Awareness: Familiarity with compliance and legal standards in general insurance.
- Technological Adaptability: Insights into emerging technologies shaping the industry.
Career Opportunities
This course prepares students for a range of roles in the general insurance industry, such as:
- General Insurance Underwriter: Assess risks and determine policy terms for non-life insurance products.
- Claims Adjuster: Evaluate and settle claims in a fair and efficient manner.
- Risk Manager: Identify and mitigate risks for insurance clients or organizations.
- Insurance Broker/Agent: Facilitate the sale of general insurance products to clients.
- Compliance Officer: Ensure adherence to regulatory standards and ethical practices.
- Loss Assessor/Surveyor: Assess damages and losses for claims processing.
- Insurtech Specialist: Leverage technology to innovate and optimize general insurance operations.
Why Choose This Elective?
“Practices of General Insurance” is an ideal elective for students who:
- Are interested in the operational and analytical aspects of the non-life insurance sector.
- Aspire to work in roles requiring strong problem-solving, negotiation, and technical skills.
- Wish to explore opportunities in both traditional and emerging fields of general insurance.
- Seek a career in industries that provide financial stability and growth opportunities.
This course combines practical learning and theoretical foundations, ensuring students are well-prepared for rewarding careers in the ever-evolving general insurance sector.