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

1. Job Insurance
Assignment 2
Group 13:
Ajay P
Archana K
Nimish B
Pradeep J
Financial Maths | Group 13

2. Business Need
Financial Maths | Group 13

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. Product definition
Financial Maths | Group 13

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. 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. Snapshot of Insurance Premium
Calculator
Financial Maths | Group 13

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. 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. 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. Thank You
Financial Maths | Group 13