# data[].attributes.body
1. company adjustor

2. independent adjustor

3. public adjustor

4. insurance agent

# data[].attributes.body
Rate making and insurance pricing

Underwriting

Production

Claim settlement

Reinsurance

Investment

# data[].attributes.body
agent as first underwriting

sources of underwriting information

decision by underwriter

# data[].attributes.body
Underwriting is the process of selecting risks for insurance and classifying them according to their degrees of insurability so that the appropriate rates may be assigned

Its also an individual trained in evaluating risks and determining rates and coverage for them

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Facultative Reinsurance
-only if the ceding company have a large amount of insurance
Advantages -can be tailored and stabilize financial operation
Disadvantages -The primary insurer dont know if the reinsurer will accepts the applicant and causing a delay

Treaty Reinsurance
The primary insurer agree to cede the reinsurer and reinsurer is agree with a business.
Advantages -Automatic,no delay,economic
Disadvantages -Unprofitable to the reinsurer because reinsurer does not know the background of applicants.

# data[].attributes.body
-company adjustor
-independent adjustor
-public adjustor
-insurance agent

# data[].attributes.body
price per unit of insurance

# data[].attributes.body
pricing of insurance and the calculation of insurance premiums

# data[].attributes.body
Ratemaking refers to pricing of insurance

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Services provided, functional areas and measures of strength and profitability of the insurance enterprise

# data[].attributes.subject
Services provided, functional areas and measures of strength and profitability of the insurance enterprise

# data[].attributes.body
-Rate making and insurance pricing
-underwriting
-Production
-Claim settlement
-Reinsurance
-Investment

# data[].attributes.body
THE most important operation in insurance company are:
- rate makin and insurance pricing
-underwriting
-production
-claim settlement
-reinsurance
-investment

# data[].attributes.body
Investment income is extremely important in reducing the cost of insurance to policy owners and offsetting unfavourable underwriting experience

# data[].attributes.headline
There 4 types of claim adjusters: Insurance agents, company adjustor, independant adjustor and public adjustor

# data[].attributes.subject
There 4 types of claim adjusters: Insurance agents, company adjustor, independant adjustor and public adjustor

# data[].attributes.body
It refers to the process of selecting, classifying and pricing applicants for insurance.

# data[].attributes.body
i) Insurance agent
ii) Company adjustor
iii) Independent adjustor
iv) Public adjustor

# data[].attributes.headline
Rating and Ratemaking	Ratemaking refers to process in set up the pricing of insurance and calculation of insurance premiums.	Rates and calculation of premiums determined by actuary which refers to company’s past loss data.	IMPORTANT: Total premiums charged must be adequate for paying all claims and expenses during policy period but not too expensive which exceeded the actual value of protection.Objectives of Rate Making	Regulatory Objectivesi) Appropriates ratesii) Similar exposure to the losses should be charged with similar rates.	Business Objectivesi) Simplicityii) Stability iii) Responsive to loss exposure and economic changesiv) Loss control

# data[].attributes.subject
Rating and Ratemaking	Ratemaking refers to process in set up the pricing of insurance and calculation of insurance premiums.	Rates and calculation of premiums determined by actuary which refers to company’s past loss data.	IMPORTANT: Total premiums charged must be adequate for paying all claims and expenses during policy period but not too expensive which exceeded the actual value of protection.Objectives of Rate Making	Regulatory Objectivesi) Appropriates ratesii) Similar exposure to the losses should be charged with similar rates.	Business Objectivesi) Simplicityii) Stability iii) Responsive to loss exposure and economic changesiv) Loss control

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1. Notice of loss must be given
2. The claim is investigated
3. A proof of loss may be required
4. A decision is made concerning payment

-Fathiah Yasmin binti Azli, CS1121C-

# data[].attributes.body
-rate making
-underwriting
-production
-claim settlement
-reinsurance
-investment

# data[].attributes.body
-fair and prompt payment of claim
-verification of covered loss
-personal assistance to the insured

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- Applications
- Agent's report
- Inspection report
- Physical inspection
- Physical examination & attending physician report
- MIB report

# data[].attributes.body
- Facultative reinsurance
- Treaty reinsurance

# data[].attributes.body
i) Rate making and insurance pricing

ii) Underwriting

iii) Production

iv) Claim settlement

v) Reinsurance

vi) Investment

# data[].attributes.body
The most important operations in insurance company are:

i) Rate making and insurance pricing

ii) Underwriting

iii) Production

iv) Claim settlement

v) Reinsurance

vi) Investment

# data[].attributes.body
process of selecting, classifying and pricing applicants for insurance.

# data[].attributes.body
The pricing of insurance

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Very very enlightening yet a challenging topic

# data[].attributes.body
Ratemaking refers to the pricing of insurance and the calculation of insurance premiums
-a rate is the price per unit of insurance
-an exposure unit is the unit of measurement used in insurance pricing

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Investments will be needed when to pay claims 

# data[].attributes.subject
Investments will be needed when to pay claims 

# data[].attributes.body
Ratemaking refers to the pricing of insurance and the calculation of insurance premiums

# data[].attributes.headline
ratemaking: refers to the pricing of insurance and the calculations of insurance premium

# data[].attributes.subject
ratemaking: refers to the pricing of insurance and the calculations of insurance premium

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Insurers also engage in other operations, such as accounting, legal services, loss control, and information system ._.

# data[].attributes.subject
Insurers also engage in other operations, such as accounting, legal services, loss control, and information system ._.

# data[].attributes.headline
ratemaking -> pricing of insurence and the calculation of insurance premiums

# data[].attributes.subject
ratemaking -> pricing of insurence and the calculation of insurance premiums

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rates and premiums are determined by an actuary using the company's past loss experience and industry statistics

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There are two basic methods for sharing losses

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There are two basic methods for sharing losses

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1.Pro Rata method
2. Excess method

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1. provide protection
2. collective bearing of risk
3. assessment of risk
4. provide certainty

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2. treaty reinsurance
list insurance company in malaysia http://www.bnm.gov.my/index.php?ch=li&cat=insurance&type=G

Anonymous
8mo
list insurance company in malaysia  http://www.bnm.gov.my/index.php?ch=li&cat=insurance&type=G
Reinsurance

Anonymous
9mo
Reinsurance
Malaysia is considered as one of reinsurer also.See this link:http://reliance.com.bd/our-reinsures/

Discussion on module 3

Diana J
1yr
Discussion on module 3
You may share your thoughts and opinion here. Happy discussing everyone!

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ratemaking - pricing of insurance and the calculation of insurance premiums

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ratemaking - pricing of insurance and the calculation of insurance premiums

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§ UNDERWRITING- its refers to the process of selecting, classifying, and pricing applicants for insurance. the underwriter is the person who decides to accept or reject an application. the fundamental objective of underwriting is to produce a profitable book of business. the underwriter constantly strives to select certain types of a applicants and to reject others so as to obtain a profitable portfolio of business.

1)      STATEMENT OF UNDERWRITING POLICY- An insurer must establish an underwriting policy that is consistent with company objectives. the objective may be a large volume of business with a low profit margin or a smaller volume with a larger margin of profit. the insurer’s underwriting policy is determined by top-level management in charge of underwriting. the underwriting policy is stated in detail in an underwriting guide that specifies the lines of insurance to be written.

2)      BASIC UNDERWRITING PRINCIPLES- There are some three important principles are as follows. the first principle is that the underwriter must select prospective insured according to the company’s underwriting standards , second is underwriting principle is to have a proper balance within each rate classification. and the third is underwriting principle is equity among the policy owners.

3)      STEPS IN UNDERWRITING- After the insurer’s underwriting policy is established, it must be communicated to the sales force. initial underwriting starts with the agent in the field. Agent as first underwriter this step is often called field underwriting. the agent is told what types of applicants are acceptable, borderline, or prohibited. sources of underwriting information the type of information varies by type of insurance. the application is a basic source of underwriting information. an agent’s report is another source of information. and an another source of information most companies require the agent to give an evaluation of the prospective insured. a physical inspection may also be required before an application for property and liability insurance is approved.

making an underwriting decision there are three basic underwriting decisions with respect to an initial application for insurance, accept the application ,accept the application subject to certain restrictions or modifications and the reject the application.

4)      MAKING AN UNDERWRITING DECISION- after the underwriter evaluates the information, an underwriting decision must be made. there are three basic underwriting decisions with respect to an initial application for insurance. first is accept the application, accept the application subject to certain restrictions or modifications and reject the application. many insurance now use computerized underwriting for certain personal lines of insurance that can be standardized.

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CLAIM SETTLEMENT- Every insurance company has a claims division or department for adjusting claims. the different types of claims- settlement process.

1)    BASIC OBJECTIVE IN CLAIMS SETTLEMENT- the first objective in settling claims is to verify that a covered loss has occurred. and the second objective is the fair and prompt payment of claims. and the third objective is to provide personal assistance to the insured after a covered loss occurs.

2)    TYPES OF CLAIMS ADJUSTORS- the persons who adjusts a claim is known as a claims adjustor. An insured’s officer agent often has authority to settle small first party claims up to some maximum limit. A company adjustor can settle a claim up to 20,000. the adjustor is usually a salaried employee who represents only one company. An independent adjustor can also be used to settle claims. An adjustment bureau can be used to settle claims. and A public adjustor can be involved in settling a claim. a public adjustor, however represent the insured rather than the insurance company and is paid a fee based on the amount of the claim settlement.

3)    STEPS IN SETTLEMENT OF A CLAIM- There are several important steps in settling a claim. notice of loss is the first step is notify the insurer of  a loss. a provision concerning notice of loss is usually stated in the policy. after notice is received the next step is to investigate the claim an adjustor must also determine the amount of the loss. An adjustor may require a proof of loss before the claim is paid. A proof of loss is a sworn statement by the insured that substantiates the loss. after the claim is investigated, the adjustor must make a decision concerning payment.

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1) get the notice of loss immediately after losses occur
2) adjustor will investigate the claim to determine the the covered of loss occurred and the amount of loss
3) adjustor will require a proof of losses
4) adjustor decide whether the claim will be paid or reject

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there are two types of reinsurance

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Primary insurance wtites the insurance transfer to another insurer

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accept the application
accept the application subject to certain restrictions or modifications
reject the application

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–Total premiums charged must be adequate for paying all claims and expenses during the policy period

–Rates and premiums are determined by an actuary, using the company’s past loss experience and industry statistics

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Person who make daily decisions concerning the acceptance and rejection of business is called line underwriter

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Person who make daily decisions concerning the acceptance and rejection of business is called line underwriter

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Underwriting starts with the agent. Information for underwriting comes from:
1) The applicant application
2) The agent's report
3) An inspection report
4) Physical inspection
5) A physical examination and attending physician's report
6) MIB report

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Actuary is a person who determines rates and premiums

# data[].attributes.subject
Actuary is a person who determines rates and premiums

# data[].attributes.headline
ratemaking refers to the pricing of insurance

# data[].attributes.subject
ratemaking refers to the pricing of insurance

# data[].attributes.headline
underwriter is an employee of the insurer who accepts/declines application , determine appropriate premiums and evaluates risk

# data[].attributes.subject
underwriter is an employee of the insurer who accepts/declines application , determine appropriate premiums and evaluates risk

# data[].attributes.body
A line underwriter makes daily decisions concerning the acceptance or rejection of business

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The most important operations in insurance company are :

# data[].attributes.subject
The most important operations in insurance company are :

# data[].attributes.body
- rate making
-underwriting
-production
-claim settlement
-reinsurance
-investment
-alternative

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there are two principal types of reinsurance :

# data[].attributes.subject
there are two principal types of reinsurance :

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1. facultative reinsurance
2. treaty reinsurance

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Malaysia is considered as one of reinsurer also.See this link:http://reliance.com.bd/our-reinsures/

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You may share your thoughts and opinion here. Happy discussing everyone!