RISK MANAGEMENT

THE NEEDS FOR

1. Insurance plans will help you pay for medical emergencies, hospitalisation,
contraction of any illnesses and treatment, and medical care required in the future.
2. The financial loss to the family due to the unfortunate death of the sole earner can be
covered by insurance plans. The family can also repay any debts like home loans or
other debts which the person insured may have incurred in his/her lifetime
3. Insurance plans will help your family maintain their standard of living in case you are
not around in the future. This will help them cover the costs of running the household
through the insurance lump sum payout. The insurance money will give your family
some much-needed breathing space along with coverage for all expenditure in case
of death/accident/medical emergency of the policyholder.
 4. Insurance plans will help in protecting the future of your child in terms of his/her education.
They will make sure that your children are financially secured while pursuing their dreams and
ambitions without any compromises, even when you are not around
5. Many insurance plans come with savings and investment schemes along with regular
coverage. These help in building wealth/savings for the future through regular investments.
You pay premiums regularly and a portion of the same goes towards life coverage while the
other portion goes towards either a savings plan or investment plan, whichever you choose
based on your future goals and needs
6. Insurance helps protect your home in the event of any unforeseen calamity or damage.
Your home insurance plan will help you get coverage for damages to your home and pay for
the cost of repairs or rebuilding, whichever is needed. If you have coverage for valuables and
items inside the house, then you can purchase replacement items with the insurance money.
ADVANTAGES:
1. Financial support : Insurance provides financial support in the event of unexpected
events such as illness, injury or death.
2. Peace of mind : Insurance offers peace of mind, knowing that you are protected
against unexpected events
3. Protection of assets : Insurance protects assets such as Homes, Businesses and Vehicles
against damage or loss.
4. Encourages saving : some Insurance policies such as life insurance offer savings and
Investment opportunities.
DISADVANTAGES:
1. Cost : premiums can be expensive, especially for older people.

2. Complexity : Insurance policies can be complex and difficult to understand.

3. Limited coverage : Insurance policies may not cover all types of risks or losses.

4. Fraud : There have been cases where people have committed crimes to get Insurance
claims.
STATISTICAL ANALYSIS OF INSURANCE
◦ Statistical analysis of Insurance uses data to identify patterns, trends, and anomalies in
insurance policies, claims, and customer demographics.
◦ This analysis helps insurance companies make decisions, improve customer
engagement, and increase operational efficiency.
RISK ASSESSMENT:
Statistical analysis helps insurers assess risk and optimize pricing and policies..

FRAUD REDUCTION:
Statistical analysis helps insurers identify and reduce fraud.

CUSTOMER ENGAGEMENT:
Statistical analysis helps insurers detect customer needs and sentiments, and offer
relevant responses.

POLICY MODIFICATION:
Statistical analysis helps insurers modify policies to make them more affordable.

ALGORITHMIC FAIRNESS:
Statistical analysis helps insurers identify and mitigate biases in data and algorithms
used for risk assessment and pricing
FACTORS THAT AFFECT INSURANCE
1. Age
Younger people generally pay lower premiums because they are less likely to have
health conditions.
2. Gender
Insurance companies may charge women slightly lower premiums because they
tend to live longer than men.
3. Location
Premiums may be higher in urban areas with higher medical costs or in areas with
fewer healthcare providers.
5. Medical history
Insurance companies may charge higher premiums to people with a family
history of a particular ailment .
6. Coverage Amount
The amount of coverage you choose may affect the premium.
7. Policy term
Policies with larger benefit amounts over longer terms may cost more
CONCLUSION
◦ Insurance is a large investment and you will most likely purchase
multiple policies throughout your lifetime. It is essential that you know
what each type of insurance covers and how it works so you can make
the best decision about what to buy. Do not base your decision on just
what is cheapest, but look at what it provides.
◦ Take the time to shop around and find the right insurance for your
situation. People often say they cannot afford insurance, but the reality
is that they cannot afford not to have it. It can save them from
thousands or more dollars in unplanned expenses when unexpected
situations arise. You do not want to waste your money on policies that
do not meet your needs, but the right insurance policy can protect you
and your family from unforeseen disasters.
 Presentation
By:

THANK YOU Archisha Gayathri