Archive for Insurance

Risk and Risk Management (Insurance)

July 19, 2011 admin Insurance

Financial Risk

Financial risks in the insurance sector include liquidity risk, investment risk and solvency risk.

Liquidity Risks is related to the availability of funds for payment of claims and payment of reinsurance premiums. In the insurance company, payment obligations in a timely manner are very essential to maintain the level of trust. To maintain the Company’s liquidity, premium accounts receivable management must be in place, therefore the Company sets the policy that the maximum age of receivables in 60 days.

Investment Risks is the risks that may occur due to the placement of funds for investment purposes, such as the risk of fluctuations in currency exchange rates; the risk of stock price fluctuations; the risk that funds placed by companies cannot be withdrawn because the Company in which the funds was put cannot do the pay back.

Most of insurance companies place investment funds in investment instruments in the form of deposits, bonds, mutual funds, shares in the capital market, direct investment or investment in the form of property.

Solvability Risk is the risk of the Company’s inability to meet solvency (RBC) as required by the Government, in accordance with the decision of the Minister of Finance.  Failing to comply may result in termination of business operations. To manage this risk, the Company must always maintain the quality of assets that can be regarded as assets that are allowed. Thus, solvency (RBC) calculations have complied with applicable provisions.

Technical Risk

Technical Risk is the risk associated with insurance provided by the Company as an insurance company to compensate the loss suffered by the insured in accordance with the policy. Risks accepted by the Company through a network distribution that is available like brokers, agents, sales or direct sales by branch offices or representative office throughout the country.

According to the founding philosophy, insurance companies were built as “Risk bearer” or person at risk, therefore in managing the insurance portfolio, the Company always adheres to the rules of the game which has been established in the standard operating procedures and underwriting guidelines. Thus the Company will avoid exposure to such unexpected accumulation of excessive risk and to make a healthy and profitable insurance portfolio.

These risk management process is through the selection of risks, where the Company carried out a risk assessment, ie whether the risk is acceptable considering the various aspects, among other hazards (physical, moral, the morale and legal), loss experience, general market and reinsurance support and policy requirements that will apply.

Well supported by professional domestic, regional and international reinsurers and efficient and effective reinsurance programs, the Company can balance our risk more broadly, improving network and capacity or the ability of handling acceptable risk, enrichment of the latest products so the companies can compete better in the marketplace.

Quick and professional settlement of claims is usually the main demand of company’s clients which makes the management of technical risk very important. If necessary, the Company uses adjuster services (loss assessor) as independent third party qualified to conduct surveys and make adjustments to the damaged caused.

Authority, within limits is delegated every underwriting, reinsurance and claim manager, so that every case can be resolved quickly and professionally with minimal bureaucracy. The existence of all partners of the Company both in the field of reinsurance, reinsurance brokers, adjusters and other third parties as a partner of a Company, is always reviewed every year to ensure the Company meets its obligations to policyholders and other stakeholders. When conditions change (especially rating, financial and management) in one of the partner, their presence will also be checked before the annual review.

Marketing Risk

Marketing Risk in the insurance sector is influenced by various factors such as competition, introduction of new policies by the Government or by the Association, the national economic situation and global and others.  Risk faced by insurance industry in general varies from year to year.

In 2009, the factors that influence marketing risk is the global financial crisis and the demands of capital and competition. The global financial crisis that has been ongoing since 2008 slows the national economic growth rate of which eventually also affect the premium income growth.

At the beginning of this crisis, the stock market was hit and commodity prices fell to make the business world to be more conservative. Banks tightened credit and multi-finance industry holdback their financing. Non-financial companies curbed the desire to grow. Consumers were reluctant to spend. However, the industry player in general insurance business was more afraid of the pressure of capital requirements as set forth in Government Regulation.

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A Word About Child Medical Insurance

July 3, 2011 admin Insurance

We love our children. From the moment we realize they are making their way into this world, we begin making plans for them. We want the best of everything for them, from homes and communities to schools and activities. We strive to raise them in safe, healthy, nurturing environments in hopes that they will grow into and remain safe, healthy, nurturing adults throughout their lives.

Child medical insurance must be included in our plans for our children. Children are constantly growing and exploring. They are active little people who spend a lot of time running, tumbling, playing sports, and creating potentially dangerous little games of their own. Plus, classrooms full of children are perfect breeding grounds during the cold and flu season. If your daughter’s best friend has a cold, you can safely bet that your daughter will have the sniffles within a few days, too. Inevitably our children will get sick, hurt, need medicine or x-rays once in a while or even more often!

The health and safety of our children is our most important goal. Unfortunately, sometimes we find ourselves in situations when our jobs don’t offer medical insurance. It is easier to tell ourselves “not right now” when it comes to treating a medical problem, but it is not that easy to tell our children “not right now” when they are running a dangerously high fever and ask us to help them feel better.

If you do not have medical insurance covered by your place of employment, or you are covered by medical insurance you purchase yourself, you need to stop and think about the medical insurance of your child. If you are not covered, or can not afford medical insurance for yourself or your child, there are agencies out there that will help you. You can find affordable, and sometimes even free, child medical insurance that will cover dental, vision, and health costs for your child.

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Benefits of Group Health Insurance

June 27, 2011 admin Insurance

Group Health Insurance is an insurance scheme provided by the insurance companies for a group of persons, such as the employees of an organization at a reduced individual rate. Most of the companies provide group health insurance schemes for their employees, which helps the employees to receive health treatments without any cost they need to pay. Group health insurance ensures the employees of an organization to receive medical treatment quickly so that they can avoid waiting long time in queues and other sufferings.

Group health insurance offers lots of advantages to both the employer and the employees. As far as an employer is concerned, the group health insurance scheme will provide enough medical treatment quickly for the staff of his company and thereby ensures speedy recovery from diseases and keeping disruption owing to illness in the office to some extend. The employee can also provide more focus on his/her job as there is no need to worry thinking about the time they want to wait for the treatment on the NHS, or suffering undue pain, or for a diagnosis.

Group health insurance plan offers several valuable benefits for an employee. The main advantage of becoming a member of the group health insurance scheme is that the insured doesn’t have to pay large premiums for taking a private health insurance plan. The employee can work without being worried of their health as he/she will surely get quality medical help immediately if needed.

There are several health insurance companies offering group health insurance schemes. Most of the health insurance companies, as part of their Group Health Insurance Plan, provide the insured (the employees of the company) to take a ‘health check’ once in every year at any private hospital with which the company has tie-up. The health checks will cover a complete check up, which include height, levels of fitness, weight, blood tests, blood pressure. The health checks are done so as to check whether the insured employee is in a good health or to find out a so far undiagnosed condition. What ever be the purpose, the health check is considered to be beneficial for the employee and the employer.

For those individuals who are not a member of the group health insurance scheme has to pay about $150 upwards to perform a complete health check. Hence this is considered as an added advantage for those who are in the group health insurance scheme. Group health insurance also helps to boost the morale of the staffs as they will know that their employer is providing special care about his employees.

Group health insurance schemes will differ from one insurance provider to another. The insurance coverage will also change according to the schemes you select. But there are certain factors which all the group health insurance schemes will cover for:

- In-patient and day-patient treatment
- Out patient treatments such as physiotherapy
- Free Help lines such as a GP Helpline and Stress Counseling Helpline.
- Specialist consultations after getting a referral from the employee’s GP

Group health insurance policy differs from one insurance company to another. It is always advisable to compare different insurance companies before selecting a group insurance policy. Select the one which suits your company.

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Auto Insurance – which one?

June 16, 2011 admin Insurance

Auto insurance is often a sticky subject. Everyone feels like they’re paying too much to insure their car, and wants to know how to get their premiums down. It’s an industry that really lacks an effective way to make price comparisons, leading many people to switch every few years the way they do with credit cards or phone providers.

When you understand the factors that go into deciding the price you pay for auto insurance, however, you should find it much easier to read the market and use it to your advantage. This article should give you a basic grounding, but whole books have been written on the subject – it’s up to you how much you want to learn. » Read more..

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