Chapter 5 Flashcards
Key Term: A phase of the insurance market cycle in which insurers reduce the amount of coverage they are willing to write, causing supply to shrink and premiums to rise. A hard market can occur as a result of very large, unexpected losses that cause a depletion of capital within the insurance and reinsurance sectors. A hard market may also arise from a gradual lowering of underwriting standards that occurs during a soft market cycle, leading to a greater loss of experience over time.
Hard Market
Key Term: A phase of the insurance market cycle in which insurers increase the amount of coverage they are willing to write, causing supply to increase and premiums to fall.
Soft Market
List FIVE (5) typical questions management considers regarding staff assessment and analysis.
Current workforce: Are existing staff able to fulfill the brokerage’s strategic growth plans?
Training: Will extra training enable current employees to accomplish the brokerage’s goals?
Skills: What is the skill level of each employee?
Diversity: What population diversity currently exists?
Measures: What measures are needed to fully achieve the benefits of a workforce diversified by ethnicity, religion, gender, and varying levels of ability?
What must a team consider when faced with a decision?
Client interests: What is the best solution for our clients?
Costs: What is the most cost effective and efficient way the brokerage can apply a solution?
Existing talents: What talents within the team can be used to manage the issue?
Required information: What information should we provide to management for approval and recommendations?
Direction and workflow: Managers should provide direction to the team and allow them sufficient authority to make their own decisions to increase workplace engagement.
What are FIVE (5) practices a good manager or supervisor will follow in leading subordinates?
Limit micromanaging: Allow subordinates to proceed with the task without interference.
Autonomy: Encourage subordinates to follow their own ways of working, provided there is agreement on the desired results.
Errors management: Be alert for signs that things are going wrong but be prepared to allow trivial mistakes to be made.
Involvement level: Intervene only if subordinates do not spot errors or where sensitive areas are threatened.
Aid availability: Be ready with help, advice, and encouragement but avoid doing the task.
Feedback and discussion: Encourage frequent informal discussion in addition to formal feedback.
Bigger picture: Stand back from the process and retain a view of the bigger picture.
Promotion potential: Consider individuals’ potential for promotion.
Application Question
Jeremiah owns a small insurance brokerage in Toronto. He has been asked to speak at a job fair about positions that graduates can consider applying for at a brokerage. As he prepares, he considers the roles that the people in his office fulfill and writes down the different elements of their jobs.
Question 1
What are FIVE (5) tasks of a sales broker or account director?
Prospecting: For leads
Collecting information on leads: Obtaining information required to qualify a lead and provide an estimate to the qualified prospect
Composing applications: Preparing the insurance application form for the customer to sign, along with any required questionnaires or evaluations necessary to complete the insurance application
Payments Collecting payments
Policy issuance: Issuing new policies within an insurance company portal
Application Question
Jeremiah owns a small insurance brokerage in Toronto. He has been asked to speak at a job fair about positions that graduates can consider applying for at a brokerage. As he prepares, he considers the roles that the people in his office fulfill and writes down the different elements of their jobs.
What are FIVE (5) tasks a brokerage’s customer service representative is responsible for?
Servicing: Servicing client requests
Knowledge resource: Explaining coverages and insurer terminology to clients
Documentation: Providing documents required by clients
Data collection: Gathering and verifying information as required for underwriting
Policy review: Reviewing renewals and policy changes and making any necessary changes
Quoting: Providing quotes for endorsements needed on clients’ policies
Payment processing: Arranging and collecting payments
Claims: Claims counselling and reporting
Application Question
Jeremiah owns a small insurance brokerage in Toronto. He has been asked to speak at a job fair about positions that graduates can consider applying for at a brokerage. As he prepares, he considers the roles that the people in his office fulfill and writes down the different elements of their jobs.
What are FIVE (5) tasks done by a marketer or account analyst at a brokerage?
Submissions: Preparing submissions to the insurer
Data collection: Requesting any additional information required to obtain a quotation
Quoting: Collating quotations received from insurers
Proposal creation: Preparing proposals to be presented to clients
Binding: Binding coverage when the client accepts the brokerage’s proposal
Reviewing documents: Obtaining and verifying the accuracy of coverage documents from the insurer
