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Managing Careers In A Family Business


wealthymattersIn family businesses, hiring and staffing decisions are based on relationship and obligation as much as on competence and experience. After all, one purpose of family businesses is to provide employment for the family members ! But that doesn’t mean all family members perform effectively,all the time. People may slack off or stop collaborating, and sometimes they get a pass for their mistakes or behaviors. At times, they may even be disruptive to the smooth running of the business.

So what can be done in such circumstances? Read more of this post

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The Dangers Of Predictive Analytics In Life And Health Insurance


wealthymattersCurrently the health and life insurance products we buy are static in the sense that right at the beginning of the policy term the insurance company makes an assessment of the morbidity or mortality risk of the person and then agrees to insure them at agreed-upon rates.

Now imagine a scenario of continuous health monitoring and a dynamic premium that reduces when people engage in what is deemed healthy behaviour. A scenario where the insurer provides various “incentives” like discounts on gym memberships , wearables like fitbit and preventive healthcare check-ups etc.

The first time I came across such an idea,2 lines of thought came to my mind simultaneously: Read more of this post

AI Driven Personalized Life Insurance Premiums; Aye Or Nay ?


wealthymttersThe mortality risk is not the same across different sections of the population.So one of the ways in which life insurance companies have traditionally competed is by restricting their offerings to people who have lower risks of dying early and thus keeping premiums lower and/or bonuses higher.The classic example is the Postal Life Insurance plans of the past that were offered exclusively to government servants vs similar plans of the LIC that were open to all. In more  recent times,insurance companies target the more educated, affluent, urban ,financially successful professional/managerial class with better living standards and access to world-class healthcare.

Insurtech powered by AI can increase the ability of life insurance companies to make fine distinctions in mortality risks, resulting in more risk classes .So one of the merging trends in life insurance is the increasing number of risk classes as insurers seek to better match risk with premiums.Thus in theory, rather than dozens of risk classes, thousands of risk classes or even lakhs of risk classes are possible. In fact if the AI is astute at risk classification, its possible that each policyholder would be in his/her own risk class. In other words, we would have personalized premiums,designed and calculated on a custom basis for each insured person. Read more of this post

A Curious Phrase To Remember A Lesson Never To Be Forgotten


wealthymatters

Tarachand Ghanshyam Das was a Marwari Business that operated from 1791 to 1957.It enjoyed such prestige and credibility that its Hundi was negotiable through multiple offices and accepted by moneylenders and traders across the country.The Birla family got its start in Calcutta as sub-agents to this firm.
Bugotee Ram,the ancestor of the Poddars of Tarachand Ghanshyam Das was the treasurer or the Fotedar of the nawab of Fatehpur, Rajasthan. Their family name is a corruption of this title of Fotedar. Bugotee Ram was also a banker to the royal families of Jaipur, Bikaner, and Hyderabad. The Poddar family originally belonged to Churu in Rajasthan. When the local thakur imposed heavy tax on the wool trade, in 1791, the Poddars moved to a village in the domain of Raja of Sikar and named it Ramgarh.

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Call It Chance , Call it Fate …….


There is an element of Skill, Smart Work, and of course Hard Work behind any Fortune.And Prudence definitely helps in making and hanging onto it.But there is really another big variable……call it Chance or Fate……a combination of events that might just never again be repeated.Perhaps they are unique events meant to happen to the individual,or its all just random…..Nothing illustrates this better than the following series of events from Ramkrishna Dalmia’s life.

Ramkrishna Dalmia grew up in penury in Calcutta during the 1930s’ Depression.He was twenty-two when his father died and he had to support his mother, grandmother, three sisters and his wife in a single room that he had rented for Rs 13 per month. He was desperate to get rich quickly.

He speculated in silver and lost and suffered the humiliation of defaulting on his debts. Declared insolvent, he became persona-non-grata in the bazzar. Read more of this post

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