Job Insurance Need Of The Hour!


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This is a new concept - but something that is relevant in the present times.

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Job Insurance Need Of The Hour!

  1. 1. Job Insurance Assignment 2 Group 13: Ajay P Archana K Nimish B Pradeep J Financial Maths | Group 13
  2. 2. Business Need Financial Maths | Group 13
  3. 3. Core Business and Value Proposition  Job insecurity has grown increasingly over the past decade affecting  Employees well being;  Employees family;  Psychological concerns.  One of the major reason of worry is that across the developed world i.e. countries like USA, the youth population is declining both in absolute number and as a proportion of the working-age population.  Job Insurance will provide people with a product very similar in offerings to the life insurance services  Some of the measures taken into account the employees’ riskiness of the current job, their experience and no of years in the present and past employment and pay scale. Financial Maths | Group 13
  4. 4. Product definition Financial Maths | Group 13
  5. 5. Target Market J Housing Sector Housing Sector Finance Finance Hospitality Hospitality Retail Retail O Professional & B Professional & Business Manufacturing Manufacturing Airlines Airlines Automobiles Automobiles Business Services Services S Healthcare Healthcare Energy Energy Education Education Utilities Utilities E C International International Public Safety Public Safety Funerals Funerals T Business Business O Riskiness Accounting Accounting Government Government Pharmaceuticals R Target Demography – South East Asia, India, Australia Financial Maths | Group 13
  6. 6. Analytics  Online survey was conducted to get a feel of the market  90 respondents from various sectors  Survey Analysis Premium as % of Salary Job Sector 45 20 18 40 16 35 14 No. of people 30 12 No of people 10 25 8 20 6 4 15 2 10 0 5 g s n re t m en tin er io es s ca co 0 i ce th at ke m vic le th uc O uit rv ar Te er al 1%-3% 3%-5% 5%-7% Ed Se cr M He lS d Re an ia s es nc & % of Salary IT sin na HR Bu Fi Financial Maths | Group 13
  7. 7. Snapshot of Insurance Premium Calculator Financial Maths | Group 13
  8. 8. Profitability Analysis through Simulation  Sectors are divided into Chunks based on the Riskiness of the job  The Frequency is determined of the people who will come in to get insured  Job Riskiness is also determined as a probability  Salary & Term of the policy is determined as a Normally Distributed function  The maximum sum assured is fixed to be 1.5 times of the salary  The premium is dependent on the work experience, and the Riskiness of the chunk Financial Maths | Group 13
  9. 9. Business Model Revenue generation through  Underwriting, where the insurers select the risks and decide how much premium to pay  Investing the premiums they collect from insured parties Initially to keep the operating costs low, no office premises model has been proposed and all the transactions will be routed through our web portal Points which require more consideration  Gender bias has not been considered  Job history of the customer  Minimum salary level to be decided Financial Maths | Group 13
  10. 10. Conclusion  Tremendous scope in the fragile job market  Anticipating an economic boom after the current downturn, Job Insurance is a business with large market  Guarantees a less stressful situation in case of a job loss  Can supplement the various government plans like unemployment fund etc  Can act as Tax Benefit Instruments for the insurers Financial Maths | Group 13
  11. 11. Thank You Financial Maths | Group 13