Chapter 7 - Management Of Expense Flashcards
Please read through all the claims managers key tasks. (Select all that apply)
1,. Ensure the company’s strategic direction is followed
- Ensure the company’s profits are above 5%
- Set business plans and objectives to ensure smooth operation of the plans
- Maintain a sufficiently senior status so that they are able to exert the influence the role demands
- Keep up with management training to ensure all colleagues are trained well and sufficiently
6.Have sufficient resources budgeted to the department to meet their objectives
7.ensure suitable links are maintained with other departments, including underwriters, actuaries etc
8.have suitable computer systems that produce effective accurate reports
9.maintain best practice with the claims department
10.be aware of current underwriting practice and reserving methodology
- Ensure that the company’s approach to environmental. Social and governance (ESG) is implemented where possible
1,. Ensure the company’s strategic direction is followed
- Set business plans and objectives to ensure smooth operation of the plans
- Maintain a sufficiently senior status so that they are able to exert the influence the role demands
6.Have sufficient resources budgeted to the department to meet their objectives
7.ensure suitable links are maintained with other departments, including underwriters, actuaries etc
8.have suitable computer systems that produce effective accurate reports
9.maintain best practice with the claims department
10.be aware of current underwriting practice and reserving methodology
- Ensure that the company’s approach to environmental. Social and governance (ESG) is implemented where possible
A claims manager has 2 mains responsibilities when it comes to considering costs. Please could you elaborate on both responsibilities the things they may include?
- Overseeing the internal costs of running the claims department.
2.Monitoring the costs of the claims themselves (claims indemnity)
- Overseeing the internal costs of running the claims department.
- staff salaries and benefits
- the cost of any outsourcing
- It provision
2.Monitoring the costs of the claims themselves (claims indemnity)
- payment of claims
- subrogated recovery
-recovery from reinsurers, where appropriate
How can a claims manger Manage and motivate staff? (Select all that apply)
- add a bonus incentive
- planning tasks and responsibilities
- acting as a senior point of referral for technical queries
- providing leadership through decision-making and pro-active working methods
- controlling and monitoring progress
- co-ordinating training and ensuring staff development
- planning tasks and responsibilities
- acting as a senior point of referral for technical queries
- providing leadership through decision-making and pro-active working methods
- controlling and monitoring progress
- co-ordinating training and ensuring staff development
What percentage is estimated for the Uk insurance industry’s average for leakage of claims annually?
- 10%
- 3%
- 1%
- 5%
- 7%
- 5%
What are the 3 main reasons in to why an ex gratia payment would be made?
- When an exclusion is a borderline one
- Where hardship would be created
- To preserve good business relationships
I’m George Bathurst’s article what is the main cause of leakage?
Poorly skilled, badly trained staff using ineffective disparate systems
What is leakage?
The amount by which the actual settlement exceeds the amount that would have been required to make an acceptable settlement under the policy
What is leakage ?
The amount by which the actual settlement exceeds the amount that would have been required to make an acceptable settlement under the policy
An insurer must always have a mandatory SOLVENCY MARGIN, what does this mean?
This mean that the insurer must have a proportion of its funds set aside to pay out reported and estimated claims
Why is it necessary to monitor a company’s financial performance?
(Select all that apply)
A. The regulators need to be satisfied that the company is solvent in order to allow it to continue underwriting and pay claims
B. For purposes of their annual reports and accounts
C. To maintain management control
A. The regulators need to be satisfied that the company is solvent in order to allow it to continue underwriting and pay claims
B. For purposes of their annual reports and accounts
C. To maintain management control
What act enables the Financial Policy committee (FPC) to give directions within the Bank of England?
Financial services act 2012
What are the “three pillars” in the system the FCA uses to supervise all authorised firms?
- Firm Systematic framework -this involves preventative work through a structured assessment of firms
- Event-driven work - dealing with problems that have emerged or happened and securing them with customer redress or alternative remedial work
- Issues and products - campaigns in relation to market sectors or products which put or may put customers at risk
