1 KCA UNIVERSITY FACULTY OF COMMERCE CMS 200- INSURANCE AND RISK MANAGEMENT INSTRUCTOR: CPA NEBART AVUTSWA COURSE OBJECTIVE ►To introduce students to the concepts of risk and insurance. ►To equip students with the understanding of risk management and practice of insurance. 1: INTRODUCTION 1.1 Concept of risk 1.2 Types of risks 1.3 Response to risk 1.4 Perils and Hazards 2: RISK MANAGEMENT 2.0 Introduction 2.1 Risk Management 2.2 Nature of Risk Management 2.3 Principles of Risk Management 2.4 Risk Management Policy 2.5 Risk Management Strategies (tools) 2.6 Rules in Risk Management 2.7 Risk Management Process 2.8 Risk Management Problems 2.9 Risk Management Evaluation Techniques 3: INSURANCE 3.1 Historical development 3.2 Insurance mechanism 3.3 Requisites of insurability 3.4 Factors Limiting Insurability of Risks 3.5 Functions of insurance 3.6 Benefits of insurance 4: CLASSES OF INSURANCE 4.1 Life and Health 4.2 Liability 4.3 Property 4.4 Pensions 4.5 Transport 5: THE INSURANCE CONTRACT AND PRINCIPLES 5.1 Insurance contract 5.2 Insurable interest 5.3 Utmost good faith 5.4 Indemnity 5.5 Subrogation
2 5.6 Contribution 5.7 Proximate cause 6: INSURANCE PRACTICE 6.1 Proposal form 6.2 Policy document 6.3 Premiums 6.4 Renewals 6.5 Claims and disputes 6.6 Reinsurance 7: INSURANCE MARKETS 7.1 Buyers of Insurance 7.2 Intermediaries 7.3 Sellers and suppliers of Insurance 7.4 Problems of Marketing Insurance services. 7.5 Competition in the Insurance Industry 7.6 Alternative to Commercial Insurance 8.0 REGULATION OF INSURANCE SERVICES 8.1 Pre-Independence legislation 8.2 Post-Independence legislation 8.3 Objectives of Regulating Insurance services 8.4 Insurance Regulatory Authority EVALUATION 1. Class assignments 10% 2. Continuous Assessment test 20% 3. Final Examination 70% TOTAL 100% REFERENCES Dickson G (1999), Introduction to Insurance Doherty, Neil A. Corporate Risk Management: A Financial exposition. New York: McGraw-Hill, 1985. Emmett J.Vaughan, Therese M. Vaughan 9 th ed, Fundamentals of Risk and Insurance, John Wiley & Sons, 2003. Harrington, Scott E., and Gregory R. Niehaus.Risk Management and Insurance. New York: McGraw-Hill, 1998. Head, George L., and Stephen Horn II. Essentials of Risk Management, 3 rd ed., Insurance Institute of America, 1997. Mehr, R. I., and B. A. Hedges. Risk Management: Concepts and Applications. Homewood, III. Richard D. Irwin, 1974. Williams, C. Arthur, Peter C. Young, and Michael Smith. Risk Management and Insurance. 8 th ed. New York: McGraw-Hill, 1998. WEBSITES TO EXPLORE Practical Risk Management Risk and Insurance Management Society, inc. RiskINFO http;//
3 1 INTRODUCTION 1.1 Concept of Risk The word risk is certainly used frequently in everyday conversation and seems to be well understood. Risk implies some form of uncertainty about an outcome in a given situation. An event might occur and if it does, the outcome is not favorable to us. Risk can be contrasted with the word chance which implies some doubt about the outcome in a given situation; the difference is that the outcome may also be favorable e.g. risk of an accident, chance of winning a bet etc
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