一般保险 101.pdf

1、Previously on Previously on General Insurance 101:Understanding the Sector and its FinancialsPresentation FlowI.Basics of InsuranceII.Sub Segments of General InsuranceIII.Understanding the Financials of a General Insurance CompanyIV.RAMELS FrameworkV.Industry TrendsVI.Recent DevelopmentsVII.RisksVII

2、I.ConclusionWhat is Insurance Insurance is a financial mechanism to transfer risk.transfer risk.In exchange for a premium,an insurer promises compensation for specified losses(damage,accident,illness,life)per the policy terms.It protects individuals and businesses from uncertain losses by pooling ri

3、skspooling risks.Insurance spreads risk across many policyholders so that no single participant bears a devastating loss alone.Gives Financial security and stabilityHow Insurance Company WorksPremiumCommissionOpexClaimLoss RatioExpense RatioCombined RatioInvestment Yield from FloatOperating ProfitLa

4、w of Large Numbers:With a sufficiently large pool of Independent risks,the observed loss will be close to the expected loss.Principles of Insurance1.Utmost Good Faith:Both Parties act in good faith towards each other2.Insurable Interest:Insured must have an insurable interest3.Proximate Cause:Primar

5、y and direct cause of a loss without which the damage would not have occurred.4.Indemnity:Compensate the policyholder for the loss up to the amount agreed upon5.Subrogation:After compensating the loss,the rights of property go to the insurer6.Contribution:Each Insurer must pay their proportionate pa

6、rt of the claim7.Loss Minimization:Responsibility of insured to take precautions to minimize loss8.Moral Hazard&Loss Control:Deductibles,Co-payments to ensure insured has incentive to minimize loss9.Adverse Selection&Underwriting:Proper premium pricing and Limits,waiting periods.Source:Mcminn Person