Insurers' Business Model



Underwriting and investing

Businesses that are collected will receive a bonus of investment income loss model, and consumers are provided with a competitive price. Performance can be reduced to a simple equation:
 Profit = earned premium + investment income - sales commissions - damaged. 


Insurers make money in two ways:

Subscription, the premium charged for the insurance and risk-taking and risk to decide how to select the process by which  Investment in insurance premiums to be collected

Insurance company in the future with the possibility of statistical analysis and actuarial science (value) of the value of the risk of an application based on the political aspect of the complex are not. Rates, the insurer will use discretion to reject or accept the risk that the process of underwriting.

The simplest level, the frequency and severity of the risk and deliver expected to include research on the initial value of the insurance. Thus, the present value of an insurance company's historical data, loss of data will be collected, and the assessment and collection of adequate premium rates compared to earlier estimates of losses. [23] Also, the cost of the loss ratio and the load is used. On the characteristics of the risks involved in the loss of relativity, two of the most basic level, loss, damage, to determine if the two principles are involved. Using multiple functions, and sometimes more complex multivariate Univariate analysis results can be distracted when involved. Other statistical methods can be used to assess the likelihood of future losses.

Termination of a given policy, insurance policy premiums paid minus the amount of the loan amount is available for sale. Premium / loss value is not possible for technical cost is measured by the ratio,, called. Below 100% [24] The combined ratio is an underwriting profit, while the mark of a loss of 100 subscription. However, a combined ratio of 100% of the company's investment income will be profitable.


Insurance companies, investment, earn a return on the float. Float, or the insurer to collect the insurance premiums, but the amount of money at one time have been booked. They are collected and the interest or other income to keep up with the demand as soon as the insurers to invest in insurance premiums. London Stock Exchange Association of British Insurers (Insurance companies and insurance services, 94% in the UK to collect 400) is about 20% of the investment. [25]


The United States, to float the $ 142.3 billion in 2003, total revenues for the same period in the last five years underwriting loss of property and casualty insurance companies, $ 68.4 billion, at. Some Hank Greenberg, the insurance industry, including technical facilities and a float, it was possible to maintain, but I do not think that this view is not universal.


Of course, it is sometimes difficult to achieve economically depressed float. The abandonment of the bear market investment insurance underwriting to tighten their standards, then a poor economy generally means high insurance premiums. Duration, increase profit and non-profit insurance underwriting cycle is known as the trend. [26]

Claims

Complaints have been realized the utility of insurance and financial management; Due to the current product. Complaints must be submitted directly to the insured or the insurance broker or agent. Property insurance at the request of their own forms, which may be made, or may accept the application, the industry standard, such as produced by the Department of ACORD.


Insurance company claims manager to work on a large scale requires controls to support management and data entry employee records. Incoming requests to be distributed according to the strength of the solution and the right to appoint their knowledge and experience are changing the controls. Legislation, usually in cooperation with the insured, the insurance coverage is expected to begin by examining each complaint is available to the terms of the agreement, and in this case, the fair value of the credit, the economy, and official money.


Contract negotiations on behalf of the insured person's own insurance company may be public control. The complex can be applied, the insured can take out insurance to add components, policies are complex because the public adjuster to cover the insurance accidents, loss recovery, says.


It is difficult to adapt to the claims liability insurance as part of the third party, not an agreement to co-insurance and actor, in fact, can be considered as a deep pocket. Insurance, the supervisory authority should obtain legal advice (either at home or out of the consultant, panels, advisory inside), research claims that may take years, and the authority of the person or over the phone Settlement account Conference The judge ruled that the request is mandatory.

If the adjustment of doubt, insurance claims, the media can play in terms of low exposure to the insurance company.

The management of claims handling function, insurance customer satisfaction, administrative costs, damages and claims too much to try to balance. As part of this balance is a major business risk management practices and fraudulent insurance must be overcome. Sometimes the validity of the claim or dispute between the wheel and the treatment of policyholders (see insurance bad faith) to escalate the dispute.

Marketing

Insurance companies often use insurance or insurance agent to start the consumer market. Agents can be among the prisoners, that is, writes on society and the private, which means it can provide many political success yritysten.Olemassaolo, insurance companies employ more workers than the service and in particular,

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