Product details

This set of two caselets focus on the difficulties that underwriters face in fixing a rate. Caselet (1) discusses the information required for fixing rates insofar as the Indian agriculture insurance sector is concerned. It also discusses the suitable method of rate making for agriculture insurance. Caselet (2) examines the hardening of the insurance market after the terrorist attack on the World Trade Center, USA, and the problems faced by underwriters and actuaries to fix rates for terrorism covers. The caselet also stresses on the need for an organisation to buy a policy from a highly rated insurer in order to improve its credit rating. These caselets are structured to enable students to: (1) understand the role and importance of underwriters in fixing a rate; (2) discuss the hardening of the insurance market after the terrorist attack on the World Trade Center; (3) analyse the difficulties an underwriter faces while determining the rate of a policy; and (4) discuss the advantages and disadvantages of various approaches to rate making. These caselets are aimed at MBA/PGDBA students, and are intended to be a part of the insurance operations curriculum.