Вы находитесь на странице: 1из 18

METHODS AND PROCEDURES ADOPTED FOR RISK PROFILING OF CUSTOMERS

GROUP 5

COMPANY PROFILE
IDBI Federal Life Insurance Co Ltd- Joint-venture of IDBI Bank, Federal Bank, and Ageas, a multinational insurance giant based out of Europe. IDBI Bank owns 48% equity while Federal Bank and Ageas own 26% equity each The company offers its services through a vast nationwide network across the branches of IDBI Bank and Federal Bank in addition to a sizeable network of advisors and partners.

Risk Profiling
Method of risk identification and assessment by arranging all risks in a matrix reflecting frequency, severity, and existing insurance coverage. Risk profiling is an amalgamation of the risk taking capacity and the inherent risk tolerance level.

DETERMINANTS OF RISK
AGE INCOME HABBITS OCCUPATION MEDICAL HISTORY LOCATION SEX BODY CONDITION FAMILY HISTORY

Risk Profiling Process


A Listing of all risks Categorizing the risks Measure exposure to each risk. Risk Analysis

A Listing of all risks

FINANCIAL AND NON FINANCIAL RISK STATIC AND DYNAMIC RISK

FUNDEMENTAL AND PARTICULAR RISK


PURE AND SPECULATIVE RISK

Categorizing the risks

Measure exposure to each risk.


MAGNITUDE OF THE RISKS ARE IDENTIFIED THE IMPACT OF THE RISKS ARE MEASURED

Risk Analysis
Insurance risk analysis methods are described as follows Insurance risk factor profiling Insurance predictive modeling insurance risk modeling Insurance scoring Insurance risk-level classification

Insurance risk factor profiling


High risk coverage risk factor profiling An insurance company keeps life insurance records in its database: gender, age, education, smoking, drinking, sun activity, height, weight (=obesity level), claim payment, etc., as well as other contact information. The company wishes to know which life insurance groups are at the highest risk, i.e., have the highest claim ratio.

THIS IS A POSSIBLE OUTPUT OF HOTSPOT PROFILING ANALYSIS

Insurance predictive modeling


. Predictive models are developed from past historical records of insurance polices, containing financial, demographic, psychographic, geographic information, along with properties of insured objects.

Insurance scoring
Insurance risk scoring is numerical rating of insurance policies. It measures the level of risk of being claimed.

Insurance Risk level classification


Numerical Rating System Standard risk is rated 100. Favorable factors are assigned negative value called credits. Unfavorable factors are assigned positive values called debits

Substandard

- +100

Standard value
Super standard

100
-100

JUDGEMENTAL METHOD

Individual view of experienced professionals like doctors, actuaries, underwriters and others are combined. No rigid rules and scales are prescribed or followed. Personal judgment plays a vital role in the whole system of underwriting. This method is used, where decisions can not be taken based on numerical rating.

RISK CRITERIA FOR BASIC UNDERWRITING OF CUSTOMERS IN IDBI FEDERAL


AGE 1-15 HIGH RISK 15-40 NORMAL RISK 40 AND ABOVE HIGH

STANDARD AGE PROOF PASSPORT PANCARD VOTER ID


OCCUPATION GENDER

MEDICAL TEST UPTO 15 LAKHS NO MEDICAL IS REQUIRED IN IDBI DEPEND UPON AGE AND SUM ASSURED THE NEED FOR MEDICAL IS DETERMINED