Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

M92 > Chapter 5 > Flashcards

Chapter 5 Flashcards

1
Q

How often does the process of strategic planning occur

A

Annually but companies will always be looking for ways to improve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is the essential purpose of strategic planning

A

Set the business On a path of best performance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What do strategic managers do when strategy planning

A

Monitor the business environment with changes and new opportunities
With improvement in growth
Profitability
Market share
Brand presence often at the heart of the strategic ambitions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

In large firms who do the strategy planners refer to

A

The chief executive and finance director

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What projects do the strategy team undertake?

A

Projects for the senior executives on new areas of business

Look into expanding and developing existing business lines or operations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What type of research all the strategy team undertake

A 
Supply and demand
Lost history and trends
Regulatory hurdles
Staff availability and expertise
Start-up costs or business acquisition costs
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the four Areas of a strategy team is principal activities

A

Mergers and acquisitions
Classes of business
Geographical spread
Partnerships

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Under strategy focus for mergers and acquisitions access to records of the target companies is vital particularly for the buyer these include following

A

Financial records

Sales
Claims profile
Staff numbers
Service costs
Regulatory status
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Under the strategy teams principal activities what is classes of business

A

The strategy team will look at potential for a firm to enter into new classes of business or whether they should continue in a particular class

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Under strategy focus teams principal activities what is the focus on a geographical spread

A

They will assess penetration in areas where they believe the firm has ability to sell and service policies locally

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What does it mean by strategy for providing insurances on a white label basis

A

It balances sufficient sales with losing the immediate brand recognition that a company may want

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is outsourcing

A

Outsourcing is a sub contracting of a business activity with the aim of improving the overall efficiency of the company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

A strategy to manage costs and Access special skills and knowledge of results in what

A

Outsourcing of certain functions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Who do many insurance companies now outsource a claim function to

A

Third-party administrators to manage all aspects of the claims

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What percentage of new motor insurance policies are purchased in the UK via price comparison websites

A

60%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What will the strategy development Process consider in order to match the planning period with the strategic objectives

A

Various time horizons

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What happens when the various elements of a strategy have been set

A

They are passed onto operational management for implementation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

The business planning process will require business units to complete a planning document that will cover which following points:

A 
Classes of business to be written 
Maximum value to be insured
Gross premiums
Planned loss ratios
Investment strategy
Reinsurance strategy
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Who agrees the underwriting strategy

A

Senior management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What do you senior management focus on with the underwriting strategy

A

Transacting a book of business where sufficient premium is acquired across all policies that claims can be met

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is a hierarchy of the underwriting department

A 
Top:
Director of underwriting
Head of department
Class underwriters
Section supervisors
Underwriters
Assistant underwriters
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is the pure risk premium

A

The part of a premium necessary to pay for losses and loss related expenses only.

It excludes other expenses such as sales and marketing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What information is normally provided an information pack for printing pack for underwriters for Buildings and contents

A

Construction and risk management features such as hazardous cleaning fluids

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What information is normally provided an information pack for underwriters for
BI

A

Details of earnings over the last three years are projected earnings for one or two years going forward

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What information is normally provided an information pack for underwriters for EL

A

Number of staff an estimated annual payroll

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What information is normally provided an information pack for underwriters for PL

A

A description of a type of product produced an annual turnover

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What information is normally provided an information pack for underwriters for Directors and officers

A

Number of directors and details of shareholders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What information is normally provided an information pack for underwriters for motor

A

Details of all vehicles including any security devices fitted

29
Q

What information is normally provided an information pack for underwriters for claims

A

A schedule of all losses over last five years

30
Q

We are delegated authority the Party to whom authorities been delegated is known as what

A

The coverholder

31
Q

What is an agreement to set up between the parties which sets out the Scope and extent of the authority delegated to the Cover holder

A

Binding authority

32
Q

What is the attraction of delegated authority from insurers point of you

A

The flow of business arising from a tailored policy wording

33
Q

What is a managing general agent

A

they don’t just hold the under writing pen they also undertake other activities such as marketing, selling admin

34
Q

Do you managing general agents provide funding for claims

A

No although it may undertake claim payments from a fund provided by the insurer

35
Q

What is a line slip

A

An agreement between an individual broker and a group of two or more insurers whereby each insurer agreed to accept a pre-agreed proportion of a specified type of insurance

36
Q

B- Who will do research on behalf of the board? (Strategy)

A

Strategy planner / senior managers

37
Q

B - what is swot

A

Strength
Weakness
Opportunities
Threats

38
Q

B- what do the strategy team do?

A 
Use swot
Work out weather its m&a
Launch new projects 
Reach new territories
Different distribution channels
39
Q

B - what are the different types of actuary include

A

Pricing to predict loss rstes for a business
Reserving
Modelling specialist
Solvency capital specialist

40
Q

B - in actuaries what does it not include

A

Claims

41
Q

B- what does a modelling specialist do in actuaries

A

What impact storm or flood would have on a portfolio

42
Q

B - What is risk management

A

Identification, analysis and control of all risk

43
Q

B - what are the parts of a risk process

A

Inherent risks
Residual risks
Risk ranking
Risk register

44
Q

B - What do the parts of the risk process help do?

A

Can identify the risk and help determine how to control the risks

45
Q

B - what will the risk manager look at?

A 
Strategic risk
Insurnace pricing and reserving tisk
Investment / market risk
Credit risk
Operational tisk 
Group tisk
46
Q

B- in risk management what is credit risk

A

Both not being paid premium and not being reimbursed by the reinsurer due to the bankruptcy

47
Q

B - in risk management what is meant by operationsl risk

A

Not enough staff / better staff / better equitment

FUNCTION MANAGER

48
Q

B - what does the facility manager

A 
Help staff morale 
IT equipment 
Desks / chairs
Creating a nice office
Find a premises
49
Q

What is the consumers rights act 2015

A

Focuses on unfair contract terms unfair treatment of customers

50
Q

What three elements are part of customer service

A
  1. Pre-transactional (staff training and preparation)
    1. Transactional (customer service demands and delivery)
  2. Post transactional (claims handling handling complaints cross selling)
51
Q



How do general business pricing actuaries provide support to the underwriting team

A

By predicting loss ratio is based on historical performance of the book

52
Q

How do actuaries help with reserving

A

They undertake extensive reviews of the initial reserve seat against a claim compare to the final actual costs in order to assess the trends

53
Q

How do actuaris support the solvency capital

A

They look at the risks to the business such as credit, market, operational, group, strategic and reserving to calculate the worst case scenario

54
Q

A- What is a logical process of a risk management identification analysis

A

1- identifying the firms strategic objectives
2- risk identification (brainstorming, site visit, scenario analysis, flow process analysis)
3- risk analysis (looking at the probability of a risk event happening and the impact on the objectives of the company)
4- risk reporting
5- monitoring and iteration 

55
Q

a- What is a risk register

A

A centralised data source on all risks the company is known to face and it is a job at the risk management department to keep it current and report significant findings

56
Q

In the risk analysis how will risk to be assessed

A

From both an inherent and residual viewpoint

57
Q

How does the inherent analysis describe the risk

A

Without any special controls applied except perhaps the basic common sense controls. For example what is the risk of injury you would expect people to take reasonable control

58
Q

What is the residual risk

A

Should somebody have safety training such as guidance on lifting heavy objects reduce the risk to acceptable residual risk

59
Q

 What is the RAG rating when risk ranking

A

Any risks in a red (9 to 15) category warrant immediate attention in a process of risk reduction will be remain recommended this is known as the red amber, green rating

60
Q

What are the three main types of assets

A

Premiums, shareholders funds retained profit and loans, claim reserves

61
Q

What Does the role of the investment department include

A

Discussions with strategy, underwriting and close colleagues to gain an understanding of the nature of the insurances that the company plans to write

62
Q

What is the finance director

A

A key member of a strategy development team and company leadership they make decisions regarding the insurance to be transactions, management of costs and expenses, investment strategy and capital raising

63
Q

How does the finance team help with solvency II

A

They are responsible for setting asset and liability, market and credit risks

64
Q

Who insures that the administrative operations under the companies act 2006 and stock exchange listing rules are compliant with

A

The company secretarial function

65
Q

Who looks after all the documentation, filings and registration is required by companies house, including the registration of companies directors

A

The company secretary

66
Q

What is outsourced internal audit

A

Where external consultants may be engaged to undertake the work

67
Q

Who do internal auditors report to

A

The chairman of the audit committee who is a non-executive director of the board
The senior executive such as a finance director or chief executive

68
Q

Who is responsible for ensuring that all procedures required for salary payment or replace an operating effectively

A

The HR team

69
Q

What does the FM team do

A

Only takes maintenance, operation, cleaning and repair and security of the premises

M92 (12 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions