Chapter 2 Flashcards
Private individuals
Many people buy insurance in their private capacity. Household buildings and contents
insurance will be high on the list, though motor insurance will tend to be the major item of insurance
expenditure for most individuals
Companies
The range covered by this category of ‘buyer’ extends from the very largest multinational
corporation with a multi-million pound worldwide premium spend to the self-employed sole trader working from home
Partnership
Do not have a separate legal existence, each of the partners being jointly and severally liable.
They are most commonly found in the medical, veterinary and legal professions and their insurance needs,
especially in the area of professional negligence (the giving of poor professional advice that leads to loss), tend to be catered for by specialist schemes
Public bodies
Are major buyers of insurance and include local authorities and schools. In some cases, they may
be large enough to have set up their own insurance fund through which they insure some risks, while turning to the insurance market to cover other risks. Some public bodies are exempt from compulsory insurance requirements.
Charities, associations and clubs -
There are many charities, associations and clubs that will have some insurance needs.Whether it is the local football club or the local stamp collecting society, the management team or organisers will usually buy insurance cover for liability risks and damage to owned propert
Mutual companies
Owned by thier policy holder
A captive
is a tax efficient and cost- effective way of transferring the risk
Proprietary companies are limited liability companies, owned by their shareholder and registered under the
companies act 198
Owned by thier shareholder and registered under the companies act 1998
An introducer appointed representative (IAR)
Is one wose scope of appointment by the authorised person./ fimr is limited to effecting introductiong and disributing what are terms non real time financial promotions in other words supplying such thing as brouchures and proposal forms
Appointed representatives AR
May be an individual or a company that is appointed by an authorised person(the principal) under the terms of a contract. An AR may be acting for an insurer or for an intermediary that is itself directly authorised by the PRA or FCA. The contract which sets out the terms of business between the parties (called an Appointed Representative Agreement) determines the AR’s role and responsibilities
Authorised person
Is an individual or firm authorised by the FCA o engage in regulated activities
Indirect
Intermediaries paid by the insurer to promote products on the insurers behalf (brokers
Direct
employees of the insurer sell the insurance products or direct mailing techniques and websites are used
to promote sale (salesperson)
Aggregate
A price comparison website uses web bases extraction tools to collect and analyse (aggregate) information from different data sources
An underwriter
Assesses the risk that people bring to the pool and decides whether to accept it and on what
terms. They will then calculate a suitable premium
A loss adjuster
is an expert in processing claims from start to finish and acts for the insurer. Straightforward small claims are usually negotiated and settled by an insurer’s inhouse claims staff
An Assessors
All assessors are an expert in dealing with insurance claims and are appointed by the insured to assist them in negotiating a claim with the insurers. Loss assessors are experts in dealing with insurance claims and act for the insured/ policyholder, preparing and negotiating claims on their behalf.
An actuary
May be defined as a professionally qualified persons who apply probability and statistical theory to problems of insurance, investment, financial and risk management, and demography
Premium tax rate is
12%
Travel
20%
The rule of the risk manage
The systematic identification analysis and economic and elimination or control of
risks that threaten a business
A compliance officer
Is responsible for ensuring that a firm complies with all legal and regulatory requirements
ABI- Association of British insurers
The Abi is the largest of the insurance market associations formed in 1985 its 250 member companies include UK insurers and foreign insurance companies operating in the UK
IUA- International underwriting association of London
The IUA is the world’s largest representative
organisation for international and wholesale insurance and reinsurance companie
BIBA- British Insurance Brokers associatio
BIBA is the major non-statutory trade association for insurance intermediaries, with a membership of just under 2,000 regulated firms
LMRC- London market regional committee
The position regarding representation of London market brokers is currently slightly complex up until the end of 2008 BIBA operated through a virtually autonomous trade body representing the interests of Lloyd’s brokers operating in the London and world-wide insurance and reinsurance markets
LLIBA- London and international insurance broker association
Is a trade body representing the interests of
broker in the London and worldwide insurance and reinsurance markets
LMA- Lloyd’s market association
Provides representation, information and technical services to underwriting businesses in the Lloyd’s market
MGAA- Managing general agents associatio
Is a trade body for MGA’s it represents their interests and sets best practice guideline
The CII- Chartered insurance institute
Is the professional body for those who work in insurance and is at the forefront of insurance education and professionalism
CILA- Chartered institute of loss adjusters
Loss adjusters are impartial claims specialists
The IFOA- Institute and Faculty of actuarie
Has more than 12,000 fellows’ affiliates and student members
The IRM- Institute of risk management
offers qualifications and training for risk management professionals and
provides information and networking opportunities
Airmic- Association of insurance and risk managers
Is in industry and commerce, promotes the interests of corporate insurance buyers and those involved in risk management and insurance for their organisation
IUK- insurtech UK
Represents the interests of businesses that define themselves as insurtech has its primary
aim of positioning the UK as a leading technological innovation in the insurance sector
MIB- Motor insurers Bureau
MIB has two agreements with the government designed to provide compensation
for the victims of uninsured or untraced motorists
