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UNIVERSITY OF
MYSORE
Futures, Options and Swaps
Topic: Role of insurance and Derivatives
PRESENTING TO,
G.KOTRESHEWAR SIR,...
Insurance
Human beings, his family and properties are
always exposed to different kinds of risks. Risk
involve the losses....
Role of insurance
 Insurance provides security
 Insurance reduces business risk or losses
 Insurance provides peace of ...
Derivatives
 Derivatives are financial instruments
whose value depends on the value of
“underlying assets.”
 It is more ...
Role of Derivatives
 Price Discovery
 Risk Management
 They Improve Market Efficiency for the
Underlying Asset
 Deriva...
Air India’s insurance contract
up for renewal on October 1 for
an estimated $25 million
Published on 22nd September 2014
T...
The insurance contract for Air India's 105-strong fleet comes
up for renewal on October 1 at an estimated premium of
about...
conclusion
Insurance and derivatives are effective tool to
control or minimize the risk factor. In absence of this
tool th...
Reference
Insurance in risk management/ slide share
Role of insurance / investopedia
Capital market institutions and instr...
Presented By,
Mahadeva prasad.m
2nd MFM
DOS in commerce
Manasa gangotri ,
Myose.
Thank you
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Role of insurance and derivatives

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The presentation describes that what is the role of The insurance and derivatives in a capital market

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Role of insurance and derivatives

  1. 1. UNIVERSITY OF MYSORE Futures, Options and Swaps Topic: Role of insurance and Derivatives PRESENTING TO, G.KOTRESHEWAR SIR, FACULTY , DEPARTMENT OF COMMERCE, MANASA GANGOTRI ,MYSORE.
  2. 2. Insurance Human beings, his family and properties are always exposed to different kinds of risks. Risk involve the losses. Insurance is a tool which reduces the cost of loss or effect of loss caused by variety of risk. It accumulates funds to meet individual losses. It is not device to prevent unwanted event of happening or cause of loss but protects them against that loss by compensating which as lost.
  3. 3. Role of insurance  Insurance provides security  Insurance reduces business risk or losses  Insurance provides peace of mind  Life insurance encourages saving  Insurance accelerates the economic growth of the country  Insurance provides credit facilities  Insurance helps to reduce inflation
  4. 4. Derivatives  Derivatives are financial instruments whose value depends on the value of “underlying assets.”  It is more like a contract of future date in which two or more parties are involved to alleviate future risk.  Usually, derivatives enjoy high leverage. Its value is affected by the volatility in the rates of the underlying asset.
  5. 5. Role of Derivatives  Price Discovery  Risk Management  They Improve Market Efficiency for the Underlying Asset  Derivatives Also Help Reduce Market Transaction Costs
  6. 6. Air India’s insurance contract up for renewal on October 1 for an estimated $25 million Published on 22nd September 2014 The race for getting national carrier Air India's insurance renewal deal has begun between public and private sector general insurers. A New India Assurance-led consortium of public sector insurers has emerged as the frontrunner, while the private sector has rallied behind a group led by ICICI Lombard General Insurance.
  7. 7. The insurance contract for Air India's 105-strong fleet comes up for renewal on October 1 at an estimated premium of about $25 million. The New India Assurance-led consortium has United India Insurance, Oriental Insurance and National Insurance as co-insurers. While, ICICI Lombard General Insurance-led group has HDFC Ergo and Reliance General as co-insurers. Following recent rise in aviation mishaps such as a series of Malaysian Airlines tragedy, premiums have increased, pushing up the bill for insurers. Air India's current insurance policy, issued by New India Assurance, includes a $9.5-billion hull cover and a combined single liability of $1.5 billion.
  8. 8. conclusion Insurance and derivatives are effective tool to control or minimize the risk factor. In absence of this tool there is a possibilities of occurring loss is very high .and these are very essential in financial market to managing the Varity risks.
  9. 9. Reference Insurance in risk management/ slide share Role of insurance / investopedia Capital market institutions and instruments Eastern Economic Edition 4TH edition by, Frank j.fabozzi and franco modigliani
  10. 10. Presented By, Mahadeva prasad.m 2nd MFM DOS in commerce Manasa gangotri , Myose. Thank you

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