INSURANCE BASICS

• Insurance can be done only for pure risk

• Bombay mutual assurance society
• LIC 1956
• WHY INSURANCE

Protection/liquidity/tax relief/money when needed

• Term life vs endowment(event of survival) fixed term plus accumulated profits

• Maturity claim/ death claim
• What is pure risk?
Pure risk refers to risks that are beyond human control and result in a
loss or no loss with no possibility of financial gain. Fires, floods and
other natural disasters are categorized as pure risk, as are
unforeseen incidents, such as acts of terrorism or untimely deaths.
• Speculative risk is taken on voluntarily and can result in either a
profit or loss. Speculative risks are thus considered controllable risks.
Almost all financial investment activities, for example, are considered
speculative risk because they are chosen risks and can result in loss
or gain.
• PERIL- potential cause of loss. Accident, fire theft
• HAZARD- increases the seriousness of a loss, increases likelihood
of loss

• Insurance typically involves paying someone else to bear risk, while

hedging involves making an investment that offsets risk.

• What insurance does is shift potential financial losses from you to

someone else.
• Insurance originated in china
• Pooling of losses/risk transfer/indemnification
• Insured is the person who is covered against risk. On the other hand, the
insurer is the company that is providing coverage
• Indemnity means making compensation payments to one party by the other for
the loss occurred
 • ‘Risk’ is a term that we use to refer to the chance of suffering a loss.

• The events that give rise to such risks are known as perils

• Insurance is, thus, a financial tool specially created to reduce the financial impact of
unforeseen events and to create financial security.

• Life Insurance can be defined as a contract between an insurance policy holder and
an insurance company, where the insurer promises to pay a sum of money in
exchange for a premium, upon the death of an insured person or after a set period.

• annuity is the term used to define the systematic payouts which you receive from
your pension plan after your retirement

• annuity vs pension refer book mark

Property insurance and casualty insurance (also known as P&C insurance) are types
of coverage that help protect you and the property you own.

Property insurance helps cover stuff you own like your home or your car.

Casualty insurance means that the policy includes liability coverage to help protect
you if you're found legally responsible for an accident that causes injuries to another
person or damage to another person's belongings.

Property and casualty insurance are typically bundled together into one insurance
policy.

• Reinsurance occurs when multiple insurance companies share risk

by purchasing insurance policies from other insurers to limit their
own total loss in case of disaster.
• By spreading risk, an insurance company takes on clients whose
coverage would be too great of a burden for the single insurance
company to handle alone.
• Premiums paid by the insured are typically shared by all of the
insurance companies involved.
What are Group Insurance Plans?
Group Insurance plans cover a group of people with a single
insurance policy. These plans can be bought by organizations for
providing cover to their members. The members covered under the
single insurance policy are collectively referred to as a ‘Group’.

What are the benefits of Group Insurance Plans?

With Group Plans, you can get a variety of
benefits. Following are some of the benefits of
choosing a Group Plan with ICICI Prudential Life
Insurance:
• You can avail tax benefits* on the premiums paid for the Group
Insurance plan
• These plans offer you an opportunity to secure the members of your
organization
• These plans can be used as a tool to provide incentives to the members
of your organization
• As an employer, you can meet your statutory obligations and also earn
returns on them
 A
Product Owner is part of the scrum team. The key responsibilities of a Product Owner are to
define user stories and create a product backlog. The Product Owner is the primary point of
contact on behalf of the customer to identify the product requirements for the development
team. He defines the USER STORIES.

The Scrum Team roles are categorized into three – Scrum Master, Product Owner, and the
Development Team

Scrum team definition, they are cross-functional, highly productive, and self-organized teams
that work together to deliver high-quality product increments.

What is product backlog with example?

A product backlog is a prioritized list of work items or features that help you
meet product goals and set expectations among teams

A Business Requirements Document (BRD) describes in

detail the business solution for the project as per
business/customer/client’s needs and requirementsA Business
Requirements Document (BRD) describes in detail the business solution
for the project as per business/customer/client’s needs and requirements
 It includes the purpose of starting the project, what business solution
does it provides, the purpose behind doing the project, its features and
functionalities, and its timeline of completion

A Business requirements document (BRD) is thus created before the

project starts in order to get every stakeholder on the same page
regarding what the project entails and what the final product will look like.

• Executive Summary
• Project scope
• Desired goals and project objectives
• Needs statement
• Requirements
• Identify Stakeholders
• SWOT analysis
• Limitations
• Time Frame and Schedule
• Budget and Financial Impact

ELICIT VS GATHER

1. To draw forth or bring out (something latent or potential)

2. To call forth or draw out (as information or a response)

There are many ways to elicit requirements from your stakeholders. A

BA should be proficient in all of these: interviews, workshops, focus
groups, brainstorming, observation, and surveys/questionnaires.

BPI

• Identify the process

• Analyse the pain points
• Root cause analysis
• Design and evaluate
• Implement new process
• Evaluate / quantify
HOW- agile/ lean mgmt./ six sigma/ automation

BPI VS BPR
While BPI is an incremental setup that focuses on tinkering with the existing processes to improve
them, BPR looks at the broader picture. BPI doesn’t go against the grain. It identifies the process
bottlenecks and recommends changes in specific functionalities. The process framework principally
remains the same when BPI is in play. BPR, on the other hand, rejects the existing rules and often
takes an unconventional route to redo processes from a high-level management perspective.

GAP ANALYSIS

A gap analysis measures actual against expected results to identify suboptimal or missing
strategies, processes, technologies, or skills. Use the results of a gap analysis to
recommend actions that your company should take to meet its goals.

WHY- benchmarking/ performance indicators/ profits/ portfolio analysis

TRENDS IN INSURANCE INDUSTRY

• ‘digital-first’ business models

• Personalised premiums
• insurers are leveraging Internet of Things, advanced
analytics and machine learning to develop more granular
individual risk profiles
• traditional + insuretech
• usd 5 trillion model
• personalised products
• API plays a key role
• RPA / AI behavioural economics
• Eg- Lemonade's claims bot Jim assesses and pays out
property claims in just three seconds
• Drone imaging / wearables like Samsung connected
• Block chain for secure data

PROBLEMS FACED BY INSURANCE INDUSTRY

• Resource crunch- attrition-reskilling and upskilling-promotion-

outsource back office tasks
• Legacy systems-reduce operational expenses-outdated systems-
advanced servers-cloud computing
• Cyber security theft
• Low penetration
 TECH TRENDS IN INSURANCE INDUSTRY
• Internal workflow automation with RPA and ML-- A persuasive
example of cost-cutting is the automation of payout calculation at Fukoku
Mutual Life Insurance. The company replaced 34 employees by AI and now
expects to boost productivity by 30 percent
• Digitizing paper records- cloud storage
• ML -automation of claim process- use of satellite data- eg agri claims
• Personalized pricing with iot and social media
• Telematics in car insurance

agile epic is a body of work that can be broken down into specific tasks (called user
stories) based on the needs/requests of customers or end-users.

AGILE WATERFALL SDLC

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BA DELIVERABLES
• BA plan
Problem statement
Vision scope
Dependencies
• Business req specification
• Biz case
• Functional / nf spec

FY22 witnessed a 14 % YOY growth in Life Insurance, 11 % YOY Growth in overall G ..

The Indian Life Insurance sector has grown at a CAGR of more than 10 percent ove ..

ICICI Lombard’s acquisition of Bharti AXA General Insurance helped it become the ..
What Is an Insurance Underwriter?
Insurance underwriters are professionals who evaluate and analyze the
risks involved in insuring people and assets. Insurance underwriters
establish pricing for accepted insurable risks.

General Data Protection Regulation (GDPR) is legislation that updated and

unified data privacy laws across the European Union (EU)

What does LDTI mean in insurance?

Long-Duration Targeted Improvements

Insur tech companies- metromile/root/next ins

It contains six phases: concept, inception, iteration, release, maintenance, and

retirement.

AI AND ML

• Calims management
• Lead management
• Insurance underwriting
• Virtual assistance