The book, entitled “Modern Banking and Insurance”, written by Noushad Chengodan (Asst. Prof. in Economics, P.S.M.O. College, Tirurangadi), aims to serve as a concise text to the needs of the students of the University of Calicut (3rd semester B.A Economics) under the Choice based Credit and Semester System (CCSS). A vibrant and developing insurance sector is of vital importance to every modern economy. It encourages the savings habit, provides a safety net to rural and urban enterprises and individuals, and generates long-term funds for infrastructure development. Development of insurance is therefore, necessary to support continued nation-building process. Social security and pension reforms also benefit from a mature insurance industry. This book contains five chapters; namely: Module – I: Financial System: Components and Functions; Module II: Recent Trends in Banking: Social Banking & Reforms; Module – III: Insurance: Evolution and Principles; Module – IV: Life Insurance & General Insurance: Structure & Policies and Module – V: Insurance Companies: Uncertainty, Risk & Management.