1 / 10

Insurance

This presentation explores the fundamental concepts of insurance, detailing how businesses and individuals mitigate risks such as fire, natural disasters, and accidents. It covers the contractual nature of insurance agreements, the calculation of premiums, and the principles of risk pooling. The roles of insurers, policyholders, and beneficiaries are explained alongside the concepts of re-insurance and co-insurance. Key questions are addressed, including how premiums are determined and the insurability of various risks, offering a comprehensive overview of the insurance landscape.

prisca
Télécharger la présentation

Insurance

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Insurance This presentation isbased on ARGE Commerce (2003): Insurance, Manz Verlag Schulbuch, Wien Mag. Maria Peer

  2. EconomicImportance • Businessesandindividualsfacerisks– fire, lawsuits, naturaldisasters, theft, illness, businessinterruption, accidents, death • Controlthefinancialaspectsofthefuture • Contractualagreement– onepartyagreestocompensatetheotherpartyforlosses • Insurerchargestheinsured a price – theinsurance premium • Transformation ofrisksintocosts

  3. The poolingofrisk • Insurance based on theideathat a certainrisk • Occursonlyrarely in a lifetimeof a singleperson – • amountsto a higherfrequence, ifyouregard 10,000 people • The insuredpaypremiuminto a commonpool – themoneycollectedisusedto • Pay compensation • Cover administrative costs • Buildupreservesforunforeseeablerisks • Earn a profitfortheinsurancecompany

  4. Insurable – uninsurablerisks

  5. The insurance premium • Whatthepolicy holder hastopaytotheinsurerfortaking on theinsurancecoverageof a risk. Premium consistsof • Risk premium • Administration costs • Organisation costs • Safe premium (lifeinsurance) • Additionalfees

  6. Howarepremiumsfixed? • Howlikelyisitthat a certaindamageoccurs (e.g. a broken leg in a skiingaccident) • Probabilityoflosscanbeestimatedusingrecords • The highertherisk, thehighertheamountofthepremium • Nocoverageofrisksarisingas a resultof war, tradinglossesoractsofGod

  7. Re-insuranceand Co-insurance • Re-insurance:sharingriskswhicharetoo large foroneinsurer – taking out insurancewithotherinsurancecompanies • Co-insurance: sharingrisks, a fewinsurersparticipate in theissueofonepolicytogether • thepolicy holder isinformedaboutthedivisionoftherisk • directinsurersare registered in thepolicywiththeirsharesoftherisk • Theygetpartofthepremium • The leadinginsurancecompanytakesoverthemanagement

  8. Insurance contractparties • Insurer: partywhotakes on theinsurancecoverageof a riskagainstpaymentof a premium • Policy holder: partywhowishestheinsurancecompanytotake on theinsurancecoverage – fulfilsthedutytopaythe premium • Insured: policy holder orcontractistaken in favourof a thirdperson • Beneficiary: with a lifeoraccidentinsurance, policy holder canappointoneormorepersonswhoshouldgetthecompensation • Claimant: thepersontowhomthepolicy holder must paythecompensation. The policy holder claimscoveragefromtheinsurer

  9. The policy • Documentabouttheinsurancecontract – pieceofevidencethat an insurancecontracthasbeentaken out + contentofthecontract • Basically an insurancepolicyshows:

  10. Questions • Who cangiveyouinformationabouttaking out insurance? • Whatis an insurancepolicyandwhatisshown on it? • Howarepremiumscalculated? • Discusshowre-insuranceworksandwhatroleitplays in thesolvencyoftheinsuranceindustry? • Can all risksbeinsured? • Explainthebasicconceptofinsurance.

More Related