Financial Maths | Group 13

Job Insurance

Assignment 2

Group 13:

Ajay PArchana KNimish BPradeep J

Financial Maths | Group 13

Business Need

Financial Maths | Group 13

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

Product definition

Financial Maths | Group 13

Target Market

FuneralsFunerals

Housing SectorHousing Sector FinanceFinance RetailRetailHospitalityHospitality

Professional & Professional & Business ServicesBusiness Services ManufacturingManufacturing AutomobilesAutomobilesAirlinesAirlines

HealthcareHealthcare EnergyEnergy UtilitiesUtilitiesEducationEducation

International International BusinessBusiness Public SafetyPublic Safety

AccountingAccounting GovernmentGovernment PharmaceuticalsRiskiness

Target Demography – South East Asia, India, Australia

JJOOBB

SSEECCTTOORR

Funerals

Housing Sector Finance RetailHospital i ty

Professional & Business Services

Manufacturing AutomobilesAir l ines

Healthcare Energy Uti l i t iesEducation

Internat ional Business Public Safety

Accounting Government

Financial Maths | Group 13

Analytics Online survey was conducted to get a feel of the market 90 respondents from various sectors Survey Analysis

Premium as % of Salary

0

5

10

15

20

25

30

35

40

45

1%-3% 3%-5% 5%-7%

% of Salary

No

of

peo

ple

Job Sector

02468

101214161820

Busines

s Ser

vices

Educa

tion

Financia

l Servi

ces

HR & R

ecru

itment

Health

care

IT an

d Tele

com

Marke

ting

Others

No

. of

peo

ple

Financial Maths | Group 13

Snapshot of Insurance Premium Calculator

Financial Maths | Group 13

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

Business ModelRevenue 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

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

Thank You