RISK AND INSURANCE

About this Course

This subject introduces the nature and magnitude of risk in life and the business environment. It also helps the students in becoming more familiar with the terms and usage of Insurance and Risk Management.

Course Learning Outcomes

1) Explain the concept of risk and insurance principles that govern the insurance industry.
2) Apply intellectual capabilities in solving a problem using risk management process.
3) Demonstrate entrepreneur skillsets in relation to product knowledge by insurance industry.

Course Syllabus

+ Course Syllabus

1) Nature of risk
1.1 The definition of risk
1.2 The concept of loss, peril and hazard
1.3 The probability theories
1.4 The classification of risk

2) Risk management and assessment
2.1 Definition and objectives of risk management
2.2 Risk management process
2.3 Sources of risk
2.4 Categories of risk exposures

3) Nature of insurance
3.1 The concepts of insurance, common pool and law of large numbers.
3.2 The operations and function of insurance
3.3 The characteristics of insurable risks
3.4 The benefit of insurance

4) The introduction to principles of insurance
4.1 Insurable interest
4.2 Utmost good faith
4.3 Proximate cause
4.4 Indemnity
4.5 Subrogation
4.7 Contribution

5) Underwriting and claim process
5.1 Definition and objective of underwriting
5.1.2 The pricing of insurance
5.1.3 The components of premium
5.2 The pricing of insurance
5.3 Claims process and procedure

6) Reinsurance arrangement
6.1 Definition and functions of reinsurance
6.2 Methods of reinsurance
6.2.1 Quota share treaty
6.2.2 Surplus treaty
6.2.3 Combined quota share and surplus treaty

7) Insurance industry supervision
7.1 Insurance intermediaries and service specialists
7.2 Main consumer problem in the insurance industry
7.3 Consumer education programme (InsuranceInfo)

8) Nature of Takaful
8.1 Insurance elements that do not conform to Islamic law
8.2 The concepts of Takaful
8.3 Differences between conventional insurance and Takaful

9) Product knowledge and entrepreneur opportunity
9.1 Product knowledge
9.2 Life and health insurance plan
9.3 General insurance plan
9.4 Takaful various plan
9.5 Entrepreneur and employment opportunity by insurance and takaful industry

Frequently Asked Questions

Q1 : Why study risk?
A1 : Risk is an event that we are uncertain of in the future which will lead us to suffer loss. Everybody is exposed certain degree of risk in the future with possibility of suffering loss. Thus, we need to study risk.