Lesson Plan for Senior Secondary 1 - Insurance - Underwriting

## Lesson Plan: Understanding Underwriting in Insurance ### Grade Level: Senior Secondary 1 ### Topic: Underwriting #### Lesson Objectives: 1. To understand the concept of underwriting in the insurance industry. 2. To identify the key processes involved in underwriting. 3. To recognize the role of an underwriter. 4. To understand the importance of underwriting in risk management and premium calculation. #### Materials Needed: - Whiteboard and markers - Projector and computer - PowerPoint presentation on underwriting - Handouts on key concepts and definitions - Example case studies - Group activity worksheets #### Lesson Duration: 45 minutes ### Lesson Outline: #### Introduction (5 minutes) - **Greeting and Attendance:** Start with a friendly greeting and take attendance. - **Icebreaker:** Briefly ask students what they know about insurance. Write their responses on the whiteboard. - **Lesson Overview:** Introduce the topic of underwriting and outline the day's objectives. #### Direct Instruction (15 minutes) - **Concept Explanation:** - **Definition:** Explain that underwriting is the process by which insurers evaluate the risk posed by a potential client and decide the terms and conditions of coverage. - **Roles and Responsibilities:** Discuss the role of an underwriter as a professional who assesses risk, determines premiums, and ensures that the insurer's portfolio is balanced and profitable. - **Processes in Underwriting:** - **Risk Assessment:** Describe how underwriters assess the risk posed by an applicant, considering factors like age, health, occupation, and lifestyle. - **Policy Pricing:** Explain how underwriters use risk assessments to determine premiums. - **Policy Issuance:** Outline the process of issuing the insurance policy once underwriting is complete. - **Importance of Underwriting:** - Emphasize its role in risk management, premium calculation, and maintaining the financial stability of the insurance company. #### Activity – Case Study Analysis (15 minutes) - **Group Activity:** - Divide students into small groups and distribute example case studies. - Each group will read their case study, identify key risks, and decide whether to approve or deny the insurance application, providing reasons for their decisions. - **Discussion:** - Have each group present their case and decision to the class. - Lead a discussion on the different factors considered and how they impacted decision-making. #### Wrap-Up and Q&A (5 minutes) - **Review Key Points:** Quickly recap the major points of underwriting and its importance. - **Questions and Answers:** Open the floor for any questions the students might have. - **Assignment:** Assign students to find and bring a news article or example related to underwriting in the next class for discussion. #### Closing (5 minutes) - **Reinforce Today’s Lessons:** Highlight the significance of underwriting in real-life scenarios and its wider impact on the insurance industry. - **Preview Next Lesson:** Briefly mention what they will cover in the upcoming classes related to insurance. ### Assessment: - Participation in the group activity and discussion. - Understanding and completion of the case study analysis. - Submission of the assigned news article or example in the next class. ### Homework: Ask students to write a paragraph on how underwriting can affect someone applying for health insurance versus life insurance. Encourage them to think about the different types of risks involved in each. ### Reflection: Post-lesson, take some time to reflect on what worked well and what aspects of the lesson could be improved for better engagement and understanding in future classes.