Week 3 Essay Question

Question 1

Essay number 3 is based on what and is where?

Answer 1

The nature and structure of insurance markets and is based in your old school

Question 2

What do you talk about in essay 3?

Answer 2

Intro

Key players in the insurance market
(Primary insurer, reinsurer, intermediary and composite insurer)

Similarities and differences in global insurance
(Global insurance, technology in insurance and customers)

Types of insurance companies and markets
(Proprietary insurance, mutual insurance, life and health insurance)

Market representation (ABI)

Conclusion

Question 3

What might you talk about in market representation?

Answer 3

The ABI (Association of British insurers) and that they ensure the markets run smoothly, are widely involved in the political side of insurance like regulation as well as informing the public on insurance and information

ABI helps insurance markets stay stable, promote trust and represent insurance to the government

Question 4

What might you talk about in life and health insurance

Answer 4

Life insurance provides a sum of money in the event of death such as increasing life insruance where the premiums and payout increase overtime, decreasing whole of life insurance where the insurance and payout decrease overtime and term insurance where insurance is kept up until a certain age where after, the payout is no longer available.

Health insurance is not indemnity based, you pay the same in premiums from a young age to an older age, thus the payments of your younger less probable time of becoming sick pay for your older years where you are more likely to become sick.

Question 5

Globalisation of insurance what might you talk about? (3)

Answer 5

-Insurance companies cross borders to spread risk further expanding markets

-allows for smaller local insurance to increase their funding

-challenges such as currency exchange or natural disasters.

Question 6

On similarities and differences in global insurance, what might you talk about in terms of technology?

Answer 6

-You could talk about comparison sites which increases competition

-Easy for people to get quotes from multiple insruance companies and allows them to see who is lowest price

-Tech allows insruance companies to collect vast amounts of data that they can give to actuaries to study and pass onto underwriters

-Underwriting can become a lot more efficient under the use of technology