...CHANGE AFFECT THE INSURANCE INDUSTRY Contents Introduction 3 Problem statement 4 Delimitation 4 Methodology 5 Risk management 6 Charateristics of insurance industry 6 Risk qualification 8 Approximate cost for a threat determination 8 Probability of threat accuracy or that vulnerability will be affected 9 SWOT analyses 10 Matrix between Strengths-Threats and Opportunities-Weaknesses 11 Conclusion of SWOT analysis 13 CONCLUSION 14 Introduction Climate change is a significant and lasting change in the statistical distribution of weather patterns over periods ranging from decades to millions of years. It may be a change in average weather conditions or the distribution of events around that average. Climate change may be limited to a specific region or may occur across the whole Earth. Nowadays the impact of the climate change can be seen around the globe - seasons are shifting, temperatures are climbing and sea levels are rising. And meanwhile, our planet must still supply us – and all living things – with air, water, food and safe places to live. Weather related consequences, caused by climate change, present challenges that threaten the understanding of extreme weather and natural disaster related damages. Many natural disasters (like floods, earthquakes, tsunamis and volcanic eruptions) all around the world have showed that people are now exposed to extreme weather events. The lack of financial preparation to face the risk of extreme weather...
Words: 3072 - Pages: 13
...Comparative study of LIC of India & private Life Insurance companies in India. Introduction: The Indian life insurance industry has its own origin and history, since its inception. It has passed through many obstacles, hindrances to attain the present status. Insurance owes its existence to 17th century England. In fact, it took shape in 1688 at a rather interesting place called Lloyd's Coffee House in London, where merchants, ship-owners and underwriters met to discuss and transact business. The first stock companies to get into the business of insurance were chartered in England in 1720. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston. In 1759, the Presbyterian Synod of Philadelphia sponsored the first life insurance corporation in America for the benefit of ministers and their dependents. Life insurance in its modern form came to India from England in 1818 with the formation of Oriental Life Insurance Company (OLIC) in Kolkata mainly by Europeans to help widows of their kin. Later, due to persuasion by one of its directors (Shri Babu Muttyal Seal), Indians were also covered by the company. However, it was after 1840 that life insurance really took off in a big way. By1868, 285 companies were doing business of insurance in India. Earlier these companies were governed by Indian company Act 1866. By 1870, 174 companies ceased to exist, when British Parliament enacted Insurance Act 1870. These companies however, insured European...
Words: 2190 - Pages: 9
...Five Competitive Forces Analysis in the Insurance Industry RichardSmith Managerial Economics December 6, 2013 Industry Insurance is something that is needed by everyone today. It is used by individuals, business, corporations, etc. to help mitigate or minimize their financial risk. Various types of insurance exist today, from home, health, life, auto, travelers, indemnity, boat, renters, and even pet. Competition between insurance carriers is very stiff. In fact, in the United Kingdom (UK), the competition is so stringent, they have created a Competition Commission (CC), which is designed to ensure healthy competition between insurance companies in the UK for the ultimate benefit of the consumers and the economy ("Competition Commission GOV.UK."01). Many insurance companies have gotten caught up in having an unbalanced pool of insurers because they were not prepared and did not do their homework. The have to be very careful in their underwriting process to ensure they insure the most desirable individuals. Many insurance companies have learned quickly the value in the knowledge and power of information obtained from doing research and the huge financial risk associated with getting stuck with a poor unbalanced pool of insured. Therefore, many insurance companies today are utilizing various tools and setting themselves apart from the competition via the competitive forces in an effort to avoid the financial repercussions associated with not being prepared. That way...
Words: 1706 - Pages: 7
...world highlight the increasing volatility of the weather and how they can impair the economy. Although the majority of businesses are exposed to weather risks, many are still failing to adequately identify...
Words: 2086 - Pages: 9
...For Immediate Release India Insurance Industry Essay Writing Competition Winner Announced Ms Megha Asnani, Business Analyst with Accenture Service Private Limited was declared winner of the 2nd India Insurance Industry Essay Writing Competition organised by Asia Insurance Review in conjunction with the India Rendezvous. Ms Asnani’s essay on the topic: ‘An Indian Solvency II?’ stood out for its originality and in-depth analysis of the subject. Ms. Asnani will receive a cash prize of S$5,000 and she will also make a presentation of the winning essay at the 5th India Rendezvous in Mumbai on 20th January 2012. The “Energise Insurance in India” essay competition drew entries from some of the best insurance writers in India and was judged by a distinguished panel of top industry professionals and chaired by Mr Yogesh Lohiya, Chairman and Managing Director of GIC Re. Others in the judging panel included: Mr Jan Mumenthaler, Head-Insurance Services Group, Business Risk Department, IFC; Ms Joan Fitzpatrick, CEO, ANZIIF; Mr Michael J Morrissey, President & CEO, IIS; Mr Dezider Stefunko, Chief, Insurance Unit, UNCTAD; Mr Jawaharlal Upamaka, Editor, IRDA Journal; Mr A K Roy, General Manager, GIC Re; Mr K Raghunath, Vice President, Reinsurance, Bharti AXA General Insurance Co; and Mr G V Rao, Chairman & CEO, GVR Risk Management Associates. More details at www.asiainsurancereview.com For enquiries, please contact: Asia Insurance Review Ms Ann Tay, DID +65 6224 5583 or email: ann@asiainsurancereview...
Words: 5100 - Pages: 21
...Insurance Presentation Report Report on: The Development of the Brazilian Insurance Industry Submitted to: Dr. Bogusław Bamber Presentation date: BBA Finance & Accounting Semester 5, Academic year 2013-2014 Jamir Issa de Oliveira 25139 ......................... Vinicius Appolinario 25545 ......................... Executive summary The aim of this report is try to evaluate how the insurance industry has developed in Brazil since it began its operation in 1808, operating in the begging only with maritime insurance through company named Boa Fé. During that time Brazil was still a colony of Portugal and Boa Fé Company had the role to insure ships transporting valuable goods such as gold and precious woods extracted from Brazil and sent to Portugal. In 1850 was when the Brazilian insurance industry started to develop due to creation of law specifically to the Brazilian Insurance industry. These new law and regulations made possible the raising of new company in the market which operated not merely in the maritime sector but also in other kind of insurance such as property insurance for example. The attractiveness of the Brazilian market took attention of multinational corporations. The first foreign insurance companies arriving in the Brazilian market was in1862 and in the following years many other foreigner companies kept come to Brazil and from 1950 to 1990 the Brazilian insurance industry got slower its pace...
Words: 1937 - Pages: 8
...I. Overview of the Insurance industry Insurance companies play a major role in today’s financial industries. While the banking industry is creating assets and wealth, the insurance industry is protecting that wealth. The primary business purpose of an insurance company is to spread risk among people or entities that are exposed to similar risks. The insurance industry thrives in marketing uncertainties, selling promises, and making more money by cycling their revenues back into the nation’s building process. Insurance companies are global by design massive in numbers. The insurance industry, like many other industries, have changed dramatically over the years and is constantly being reshaped by factors such as changing interest rates, tightening legislation, growing competition, and even medical advancements. However, the major difference between the insurance industry and all other industries is that the insurance industry accumulates cash first and pay claims costs in the future. In fact, the insurance company does not even know if a claim will occur, when a claim will occur, and how much the claim will cost. II. Insurance Industry Structure Basic Classifications There are three main types of insurance companies: life, property and liability, and title insurance companies. Companies are further divided into primary policy writing and reinsurance. Primary writing is when insurance companies issue new insurance policies and maintain those policies throughout the policy term...
Words: 3248 - Pages: 13
...Insurance Industry – Road Ahead Path for sustainable growth momentum and increasing profitability kpmg.com/in Foreword The Insurance industry in India has undergone transformational changes over the last 12 years. Liberalization has led to the entry of the largest insurance companies in the world, who have taken a strategic view on India being one of the top priority emerging markets. The industry has witnessed phases of rapid growth along with spans of growth moderation, intensifying competition with both life and general insurance segments having more than 20 competing companies, and significant expansion of the customer base. There have also been number of product innovations and operational innovations necessitated by increased competition among the players. Changes in the regulatory environment had path-breaking impact on the development of the industry. While the life insurance industry got affected by the introduction of cap in charges, the general insurance industry got impacted by price detariffication and Motor third party risk pooling arrangements. While the insurance industry still struggles to move out of the shadows cast by the challenges and uncertainties of the last few years, the strong fundamentals of the industry augur well for a roadmap to be drawn for sustainable long-term growth. The available headroom for development, sustainable external growth drivers, and competitive strategies would continue to drive growth in the gross written premiums. However...
Words: 15937 - Pages: 64
...Why do we need the health insurance industry? Need for health insurance The health insurance industry (XLV) mainly provides a risk management tool for an individual. People cannot predict the extent and timing of their future healthcare expenses. By paying regularly for health insurance, people can get protection against financial losses resulting from high health care expenses. It also enables them to better manage their cash flows as most health insurance plans specify the maximum amount an individual will need to pay in excess of the charge paid for buying the insurance, in a calendar year. Risk pooling According to study by the Congressional Research Service, the top 5% of the total population accounted for about 50% of the health expenses in 2011 and 2012. This uneven distribution of spending forms the basis of risk pooling, where people contribute an amount of money, at least equal to the per capita cost of medical services, expected to be used by the group of insured people. Risk pooling in insurance is essentially a cross-subsidy paid by low-risk members to high-risk members of the insurance plan. The above diagram shows that the performance of healthcare system or the efficiency of health insurance and effectiveness of risk pooling increases as the size of the group increases. However, the benefit of reduced risk resulting from the increasing size of the insured population reduces as the size increases a certain optimal size, S*. As size increases, the probability...
Words: 2759 - Pages: 12
...------------------------------------------------- CHAPTER 2 FORMATION AND GROWTH OF INSURANCE INDUSTRY IN INDIA * INTRODUCTION * NATURE AND CHARACTER OF INSURANCE * NEED FOR INSURANCE * FUNCTIONS OF INSURANCE * HISTORICAL BACKGROUND OF INSURANCE * TYPES OF INSURANCE * HISTORY OF INSURANCE IN INDIA * Formation of Insurance Industry in India * Nationalization of Insurance Business in India * Privatization of Insurance Industry * LEGISLATIONS REGULATING THE INSURANCE SECTOR IN INDIA ------------------------------------------------- CHAPTER 2 FORMATION AND GROWTH OF INSURANCE INDUSTRY IN INDIA INTRODUCTION Insurance is a practice by which a company provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment. Insurance is a social device, to reduce or eliminate risk of life and property. Under the plan of insurance, a large number of people associate themselves by sharing risk, attached to individual. The risks, which can be insured against include fire, the peril of sea, death, incident, & burglary. The aim of insurance is to protect the owner from a variety of risks which he anticipates. Insurance is actually a contract between two parties. A contract of insurance is a contract where one person undertakes to pay another person, a sum of money or its equivalent on the happening of a specified event. And there is an agreed consideration for such undertaking. The person who seeks this protection...
Words: 5317 - Pages: 22
...the B.Com Honours Degree in Insurance & Risk Management TiB INSURANCE BROKERS A Member of Trust Holdings Limited ATTACHMENT REPORT TiB INSURANCE BROKERS A Member of Trust Holdings Limited PREPARED BY: Seth Chimeri PROGRAME: B. Com Honours Degree in Insurance and Risk Management REGISTRATION NUMBER: N00801170C 1 SETH CHIMERI N00801170C 3RD YEAR WORK RELATED REPORT NATIONAL UNIVERSITY OF SCIENCE AND TECHNOLOGY (NUST) 2010/2011 Prepared in partial fulfilment of the B.Com Honours Degree in Insurance & Risk Management TiB INSURANCE BROKERS A Member of Trust Holdings Limited Executive Summary The National University of Science and Technology (NUST) was established by an Act of Parliament in 1992 and through the years it has become a beacon in churning top class graduates into the commercial and science industries in Zimbabwe. In a bid to preserve its well deserved reputation NUST ensures that all its students undergo one year work related learning in their respective career lines. This serves the imperative opportunity to bridge the gap between theory and the actual practice in the industry, thus enabling graduates from National University of Science and Technology to be the favourites countrywide, regionally and internationally. This report details my enriching experience during my work related learning at TiB Insurance Brokers as a fulfillment of the requirements of the Bachelor of Commerce Honours Degree in Insurance and Risk Management with the National...
Words: 16473 - Pages: 66
...How Fair Value Measurement Changes Risk Management Behavior in the Insurance Industry JANUARY 2013 SPONSORED BY Financial Reporting Section Society of Actuaries PREPARED BY Bruce B. Rosner, FSA, MAAA Ernst & Young LLP Mark J. Freedman, FSA, MAAA Ernst & Young LLP The opinions expressed and conclusions reached by the authors are their own and do not represent any official position or opinion of the Society of Actuaries or its members. The Society of Actuaries makes no representation or warranty to the accuracy of the information. In addition, the discussion and examples presented in this paper are for educational purposes. They are not to be viewed as an authoritative statement by the Society of Actuaries or Ernst & Young LLP on the quality and/or appropriateness of an individual company’s practices or an indicator of “better” practice from one company relative to another. © 2013 Society of Actuaries, All Rights Reserved Acknowledgments We would like to acknowledge and thank a number of individuals who contributed to the success of this study: • Ronora Stryker and Jan Schuh from the Society of Actuaries for providing leadership and coordination The Project Oversight Group for guidance throughout this project: • Robert Baldwin • Mark Bergstrom • Jim Bridgeman • Joonghee Huh • Kathryn McCarthy (Chair) • James Norman • Jim Reiskytl • Doug Van Dam The companies that volunteered to be interviewed anonymously for this study Other members of the Ernst & Young team who...
Words: 15078 - Pages: 61
...CPCU, Thomas E. Quinn, CPCU, ARM and Gregory Riley, CPCU Introduction unning an insurance company is like managing a supermarket, where the price of the product is determined by the checkout clerk.” This decades old quote was meant to accurately describe a process in which subjectivity and perceptions of individual underwriters determined prices. This highlights the historical concern for fairness, accuracy, and consistency in underwriting. When we look at the underwriter’s role today we find two startling realities: (1) the underwriting function, however described and accomplished, is pivotal for any insurer and (2) the industry does not appear to be investing adequately in the development of professional underwriters for the skills being demanded. This is most notable with the impending loss of senior talent to retirement and the increasing availability of electronic tools to support the function. The research in this article examines the changes in the underwriting process. The professional underwriter still brings accuracy, fairness, and a consistent approach to profit to the table for the future oriented insurance company. The success of the professional underwriter is critical for any insurer. However, that success depends on underwriters who can use technology to improve efficiency and drive down costs, and also to guide management risk based decisions across the enterprise. The industry is not investing adequately in attracting, training, and developing the skills required...
Words: 10445 - Pages: 42
...8160 Research Paper Economics Insurance Sector in India: Challenges and Opportunities Dr. NARESH RAMDAS MADHAVI ABSTRACT Associate Professor and Head Department of Economics Mahatma Phule A. S. C. College, Panvel, Dist. - Raigad Insurance sector in India is one of the growing sectors of the economy. India’s growing consumer class, rising insurance awareness, increasing domestic savings and investments are among the most critical factors that have positively driven the market penetration of the insurance product among its consumer segments. Both the life and non-life insurance in India, which were nationalized in the 1950s and 1960s respectively, which were liberalized in 1990s. Since the formation of IRDA and the opening of the insurance sector to private players in 2000, the Indian insurance sector has witnessed rapid growth. The opening up of the insurance sector has led to rapid growth of the sector. The total premium of the insurance industry has increased at a CAGR of 24.6 percent to reach INR 2,523.9 billion in 2009 KEYWORDS : Life Insurance, LIC, IRDA, Private Insurance Companies Introduction: The economic reforms initiated in the early 90s paved the way for the growth and opening up of the financial sector, which led to a sustained period of economic growth. The insurance industry was opened up for private players in 2000, and has seen tremendous growth over the past decade with the entry of global insurance majors. India is fast emerging as one of...
Words: 1780 - Pages: 8
...Case One — Solutions HIH Insurance Limited: Inherent Risk Assessment, Legal Liability, Ethics and Audit Reports The case can be used either progressively through the course using questions relating to chapters as they are taught or as a consolidating case at the end of the course. Where possible, students should be encouraged to concurrently research information in the press relating to HIH while they undertake the case. Clearly, the points for discussion may change as further information becomes available. As the legal proceedings in the case are still in progress, the suggested discussion points are not intended in any way to comment on or compromise any investigation. All information provided in the case is available in the public domain. Question 1 —Business Risk and Inherent Risk Assessments a) How would you assess the business risk of HIH Insurance Limited? This question relates to Chapter 6 of the text. HIH's business risk can be discussed in terms of its global, local and control environment. It can also be discussed in terms of understanding the insurance industry and secondly how HIH fits into the industry or by undertaking a SWOT analysis. You may wish to address all three. Below is one approach. This can be built upon be further research by the students and as more information becomes available. • Profitability and structure of the industry. The insurance industry is particularly competitive and there has been significant increase in price competition...
Words: 2728 - Pages: 11
