5. Information Technology
5.1 Introduction In the previous chapter, we studied the parameters unique to the insurance industry. Here, we will explore the performance metrics specific to the...
5. Dunning Kruger effect
5.1 – Understanding medical declarations, pre-existing diseases and loading charge This chapter is authored by Shrehith from Ditto. The Dunning–Kruger effect is a hypothetical cognitive bias that alludes...
4. Skin in the game
4.1 – Understanding co-payment and room rent restrictions This chapter is authored by Shrehith from Ditto. Skin in the game — It’s an idea propounded by many people,...
3. The nudge
3.1 – Understanding protection, cover amount and premiums This chapter is authored by Shrehith from Ditto. An average human spends about 8 hours of his day...
2. Perverse Incentives
2.1 – Filling the application right This chapter is authored by Shrehith from Ditto. A few months ago, a young chap came to us seeking help — completely...
1. Introduction
1.1 – Overview This chapter is authored by Shrehith from Ditto. Most people in this country live on a tight budget. They don’t have a large...
18. Discounted Cash Flow Analysis (DCF)
18.1 – Recap We started chapter 1 with an introduction to financial modeling. I did talk about how financial modeling is always taught to students in a...
17. Weighted average cost of capital and Terminal Growth
17.1 – Recap As far as the theoretical concept of valuation is concerned, we are now almost at the end of it. In this chapter,...
16. Valuation (Part 3) – Risk Premium & Tax Shield
16.1 – Market risk premium In the previous chapter, we discussed that the equity holders expect a higher return than the debt holders. The higher...
15. Valuation (Part 2) – FCFF & FCFE
15.1 – Building blocks Picking up from the previous chapter, we discussed relative and absolute valuation concepts. At its core, three key inputs drive...