The return of life insurance is a method whereby the life insurance company, which insures the life of the insured, transfers part of the risk to another company called reinsurer and life insurance company called the assigned company or the original company. The main purpose of reinsurance is to reduce the risk of insurance The …
Deferred life insurance means deferring protection (death risk coverage) in the early years of issuing the document. Therefore, the protection does not start from the time of issuing the document but starts from a future date called the deferred date. However, the installment starts from the time of issue The term of the document is …
Is a temporary life insurance but includes a condition that allows the contractor to convert the temporary document into any monetary value document such as a life insurance policy or a life insurance policy at the same normal rates for co-insurance or life insurance without medical disclosure. A young person can buy a low cost …
The previous section dealt with the concept of insurance pricing. This section will deal with the pricing procedure, and its determination. Basically, pricing procedure is a methodical and sequential use of technique to determine the right price of the product. The insurer can determine the pricing procedure based on Sales area (Sales Organisation, Distribution Channel, and Division), …
The success of the competitive market depends on pricing. Basically, price is the value that sellers set on the products they offer for marketing. Insurance pricing determines the premiums collected for an insurance contract. Insurance pricing is a difficult actuarial technique. In insurance, the sales price or premium is collected before specific services, such as claim payments are …
Insurance is a vital element of any sound financial plan. Insurance companies are financial institutions with financial goals. Insurance prevents the risk of a financial loss. The major financial objectives of an insurance company are: Profitability– This is a financial objective that increases the returns of the stakeholders of the company. It determines the insurer’s ability to manage …
Gap insurance covers the excess amount on your auto loan in an instance where your insurance company does not cover the entire loan. Depending on the companies specific policies it might or might not cover the deductible as well. This coverage is marketed for those who put low down payments, have high interest rates on their loans, and …
While many underwriters believe that the cycle is out of their hands, Lloyd’s is trying to push for more proactive management of the ups and downs of the industry. In 2006 they published their ‘Seven Steps’ to managing the insurance cycle: 1. Don’t follow the herd.Insurers need to be prepared to walk away from markets …
Some communities prefer to create virtual insurance amongst themselves by other means than contractual risk transfer, which assigns explicit numerical values to risk. A number of religious groups, including the Amish and some Muslim groups, depend on support provided by their communities when disasters strike. The risk presented by any given person is assumed collectively by the community …
· Fraternal insurance is provided on a cooperative basis by fraternal benefit societies or other social organizations. No-fault insurance is a type of insurance policy (typically automobile insurance) where insured’s are indemnified by their own insurer regardless of fault in the incident. Protected self-insurance is an alternative risk financing mechanism in which an organization retains the mathematically calculated cost of …
