Chapter 2 - Research Methodology

2.1 Introduction

Research methodology is a way of explaining how a researcher intends to carry out

their research. It's a logical, systematic plan to resolve a research problem. A
methodology details a researcher's approach to the research to ensure reliable, valid
results that address their aims and objectives. It encompasses what data they're going
to collect and where from, as well as how it's being collected and analyzed.

Research methodology is the specific procedures or techniques used to identify,

select, process, and analyze information about a topic. In a research paper, the
methodology section allows the reader to critically evaluate a study's overall validity
and reliability.
Research methodology is a complex science
Research is a creative process.
It has its own methods of investigating the problems and issues of the study.
The research process is full of decisions, uncertainties, problem solving, etc.

The methodology section answers two main questions:

 How was the data collected or generated?

 How was it analyzed?

2.2 Objectives

The objectives of the research are the main areas of study for the research.

Research objective is the intention of the researcher and his/her research.

Approach and purpose of the research study is included here.

Eventually it helps to focus on the research study.

 To study the process of risk management in insurance

 To study the various types of risks in insurance
 To study the different techniques used for risk management in insurance
 To study the importance of risk management in insurance
 To study for more knowledge
2.3 Scope

The scope of the study refers to the boundaries within which your research project
will be performed; this is sometimes also called the scope of research.

To define the scope of the study is to define all aspects that will be considered in your
research project. It is also just as important to make clear what aspects will not be
covered; i.e. what is outside of the scope of the study.

The scope of the study is always considered and agreed upon in the early stages of the
project, before any data collection or experimental work has started. This is important
because it focuses the work of the proposed study down to what is practically
achievable within a given timeframe.

 Risk is inevitable, not only in the insurance sector, but also in other businesses
too.
 There are a number of risks involved in the insurance sector like operational
risk, technical risk, risk of frauds, risk of claim settlements, risk of life, etc.
 Hence different ways are used to deal with risks, mitigate the risks.
 Risk management is of vital importance to deal with various types of risks.
 The most crucial risk is the risk of life, hence managing the risks involved
related with an individual’s life is even more important because no one wants
their family to suffer in their absence.

2.4 Limitations

The Limitations are the constraints of the study, that is, the aspects of the study not
covered for different reasons.

It is the shortcomings of the that eventually weakens the research

 Time constraint, limited time

 Lack of experience
 No ready information available
 Lack of previous researches on the topic
 This research is mainly for individuals working in insurance sector, students
pursuing education in insurance, anyone and everyone affected by the risks
and its management in insurance
2.5 Importance

Research allows us to pursue our interests, to learn something new, to improve our
problem-solving skills and to challenge ourself in new ways.

 To help solve the doubts.

 To help future researchers in their research study.
 To enable decision making process.
 To assist in taking necessary measures for risk management.

2.6 Data Collection

Data collection is gathering information and analyzing it based on the interest of the
researcher and the research project.

 1)Primary data – gathered through structured questionnaires, surveys, etc.

 2) Secondary data – gathered through manuals, journals, books, related reports
and various website, etc.

The major source of data used was secondary data. Internet-websites, Research
papers, journals, news articles, etc were referred for research.

2.7 Conclusion

In this chapter 2 of research methodology, we have understood the meaning of

research methodology, what does it mean, etc.

Also we understood the objectives of our study which comprises of the main idea,
motive of the research study.

Our research objective focuses mainly on the study of the process of risk
management, various types of risks, different techniques used for the management of
risk in insurance, the importance of risk management in insurance, research more for
knowledge.

The scope includes the different aspects of the research study for instance that

Risk is inevitable and necessary measures should be taken in order to mitigate the
future losses which could be either of financial nature or an individual’s life.

Claim settlements, frauds, etc too prove to be risky.

Risk management therefore is important in order to deal with the unseen, future
threats.

Various techniques are used for the same.

Limitations are the constraints of the study.

Biggest limitation faced during this research is the limited time available.

Also doing the research for the first time with no experience in the past too proves to
be a disadvantage.

For this particular research, there was no availability of ready information as such.

There was no direct availability of the previous researches.

This research is useful for only students, individuals, research professionals who have
keen interest in this research regarding the risk management in the insurance sector.

Importance of the research allows to focus on the interest of the study, learn
something new and different.

The importance of the study helps to solve the doubts, smoothen the decision making
process and adopt the necessary measures.

Data collection shows the various ways in which data is collected, sources of data
used and so on.

This research study is done mainly by using secondary data wherein different
websites, research journals, research articles, etc were referred.