Case study

Learning Objectives

The purpose of this case is to help you:

Students will possess knowledge of current theory and techniques of the major business discipline.

Students will exhibit the leadership capacity and teamwork skills for business decision making.

Students will understand the ethical implication of business decision making and recognize ethical dilemmas.

Students will demonstrate the ability to communicate effectively.

Students will demonstrate critical thinking skills.

Part I

1. Life Insurance

Life Insurance refers to a policy or cover whereby the policyholder can ensure financial freedom for his/her family members after death. Suppose you are the sole earning member in your family, supporting your spouse and children.

In such an event, your death would financially devastate the whole family. Life insurance policies ensure that such a thing does not happen by providing financial assistance to your family in the event of your passing.

2. Motor Insurance

Motor insurance refers to policies that offer financial assistance in the event of accidents involving your car or bike. Motor insurance can be availed for three categories of motorised vehicles, including:

Car Insurance - Personally owned four-wheeler vehicles are covered under such a policy.

Two-wheeler Insurance - Personally owned two-wheeler vehicles, including bikes and scooters, are covered under these plans.

Commercial Vehicle Insurance - If you own a vehicle that is used commercially, you need to avail insurance for the same. These policies ensure that your business automobiles stay in the best of shapes, reducing losses significantly.

Health Insurance

Health insurance refers to a type of general insurance, which provides financial assistance to policyholders when they are admitted to hospitals for treatment. Additionally, some plans also cover the cost of treatment undertaken at home, prior to a hospitalisation or after discharge from the same.

Property Insurance

Any building or immovable structure can be insured through property insurance plans. This can be either your residence or commercial space. If any damage befalls such a property, you can claim financial assistance from the insurance provider. Keep in mind that such a plan also financially safeguards the content inside the property.

Question

Q1: List out top 5 insurance providers of Bahrain, select one Insurance provider and Explain the different Insurance Company Operations performed by the selected Insurance company with Examples (15 marks)

Rating and Ratemaking

Underwriting

Production

Claims Settlement

Reinsurance

2.Risk in the widest sense is not new to business. All companies are exposed to traditional business risks: earnings go up and down as a result of such things as changes in the business environment in the nature of competition in production technologies and in factors affecting suppliers. The issue of risk has captured considerable attention from corporate management in recent years as financial risk management has become a critical corporate activity.Regulators have also responded with new legislation and practices that seek to improve corporate standards.

A). Some in the academic world contend that corporate risk manaegement is a zero sum game dicuss?(5 marks)

B). Risk management is not about elimination of risk Discuss?(5 mark)