2. Management of insurance businesses: roles and responsibilities

Question 1

Who appoints the board of directors and chair in a public company?

Answer 1

The shareholders

Question 2

What important duties does the chair have?

Answer 2

That meetings are run in an orderly
and efficient manner and often be the organisations presentative to the outside world

Question 3

Can the chair also be the chief executive?

Answer 3

Usually not, under good corporate governance

Question 4

What are the two types of directors?

Answer 4

Executive Directors and Non-executive Directors

Question 5

What us a executive director?

Answer 5

Work full-time in the company.
Manage parts of the business.
Typically accountable for daily operations.
Selects the management team.

Question 6

What is a non-executive director?

Answer 6

Work part-time for the company.
Selected for specific expertise.
Do not handle executive management.
Attend board meetings to offer independent insights.

Question 7

Are are 5 responsibilities of the board in a insurance company?

Answer 7

Underwriting strategy
Financial management and capital management
Risk management
Operational effectiveness

Question 8

what are the 5 main responsibilities of the board?

Answer 8

1. Monitor executives to protect shareholder interests and ensure legal compliance.
2. Approve key reports, budgets, and plans.
3. Evaluate and reward the CEO, ensuring succession planning.
4. Oversee risk management and mitigation.
5. Ensure integrity in financial reporting, compliance, and ethics.

Question 9

What is the UK Corporate Governance Code?

Answer 9

It sets out standards of good practice in relation to issues such as:
* board composition and development;
* remuneration;
* accountability and audit; and
* relations with shareholders.

Question 10

What ‘cabinet responsibilities’?

Answer 10

responsibility of the senior executive team to propose developments to the company’s strategy for discussion at the board.

Question 11

What is the CEO/managing director responsible for?

Answer 11

The business functions and day-to-day activities of the company.
Lead in the organisation’s culture and management style.

Question 12

What are some of the responsibilities of the Finance Director?

Answer 12

• Capital and Risk Management: Develop economic capital models, conduct stress testing, and recommend appropriate capital levels and claims provisions to the board.
• Financial Reporting and Oversight: Prepare statutory accounts, board papers on dividends, and financial information for regulatory and audit requirements.
• Treasury and Investment: Manage debt, cash flow, liquidity, investments, and relationships with stakeholders such as rating agencies, analysts, and regulators.

Question 13

What is a company secretary?

Answer 13

An officer of the company that all public companies are obliged to have due to the Companies Act 2006.

Question 14

What duties does a company secretary usually have?

Answer 14

• Maintain statutory records and file returns with Companies House.
• Arrange meetings and advise on compliance with corporate laws.
• Manage legal documents and registered office communications.

Question 15

What type of company is statutorily required to have a chief actuary?

Answer 15

Life Insurance Companies

Question 16

What are Chief actuaries responsible for?

Answer 16

• Price products, calculate claims reserves, and risk-based capital needs.
• Assess investment risk for reserve funds.

Question 17

What 4 actions are management responsible for?

Answer 17

1. Planning
2. organising
3. Leading
4. Controlling

Question 18

Name 5 key skills for managers.

Answer 18

1. Earning the respect of team members and colleagues
2. Focusing on customers
3. Multitasking
4. Mobility and a global outlook

Question 19

What are the 6 characteristics of effective internal communication?

Answer 19

Communication should be:
1. accurate
2. clear
3. relevant
4. reliable
5. credible
6. timely

Question 20

What are 9 common barriers to effective communication?

Answer 20

1. Size of the organization
2. Natural reserve, fear, or lack of confidence
3. Knowledge is power
4. The language problem
5. The problem of time
6. Training
7. The grapevine/ rumours
8. Failure to recognize the need to tell
9. Inability to listen

Question 21

What are 5 benefits of efficient internal communication?

Answer 21

1. Accelerate cultural and structural change.
2. Improve employee retention, motivation, and trust.
3. Enhance decision-making quality and implementation.
4. Foster cooperation and innovation among staff.
5. Align staff efforts with corporate objectives.

Question 22

What are the 5 primary responsibilities of team leaders?

Answer 22

1. Giving guidance and direction.
2. Knowing team members’ strengths and weaknesses.
3. Organising tasks and setting goals.
4. Supporting the group’s vision.
5. Resolving issues and conflicts.

Question 23

What 3 factors make up a corporate culture?

Answer 23

1. Norms
2. Beliefs and values
3. Management style

Question 24

What are 6 types of management style?

Answer 24

1. Open door
2. Autocratic
3. Paternalistic
4. Militaristic/hierarchical
5. Democratic/consultative
6. Chaotic/laissez-faire

Question 25

What is an Autocratic management style?

Answer 25

Power and control sit with one single individual

Question 26

What is a paternalistic management style?

Answer 26

The company looks after its employees in a parental way

Question 27

What is a Democratic/hierarchical management style?

Answer 27

Decisions are taken with prior reference to as many staff members as possible.

Question 28

What is a Chaotic/laissez-faire management style?

Answer 28

The manager is a mentor and the employees can let their own ideas and creativity flourish in specific areas.

Question 29

What are the 3 main components of a business?

Answer 29

1. Physical resources
2. Financial resources
3. Human resources