...Research Paper How does an imposed requirement of regularly identifying exposure to operational risk benefit an insurance company? Executive Summary The topic of this research paper is how an imposed requirement of regularly identifying exposure to operational risk benefits an insurance company. Risks occur naturally in all business, but if risk is not controlled, there are plenty of consequences that can arise. Insurance companies deal with risk everyday, ranging from fraud, car theft, health policies, and bonds and stocks. Operational risk is defined as the resulting risk that is present after financial and analytical risk is analyzed. Actuaries are able to use many mathematical and statistical techniques that are used to calculate these risks for insurance companies. Using probability distributions and random variables, actuaries are able to identify, evaluate, and manage or control these risks. Studies on car theft have been performed to determine the percentage of risk involved in this type of risk. Different theories and hypothesis have been developed to analyze these situations. This allows insurance companies to proceed with the possibility of emerging fraud. Banks also involve different types of risk that can be modeled under a process known as Linear Discriminant Analysis. Life insurance companies involve policies between insurers and policyholders. Every contract is different for every policyholder, so the risk involved with life insurance varies greatly. Calculating...
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...Is Rental Insurance A Good Deal? QNT/561 April 23, 2012 Subhendu Roy In the dynamic society knowledge is always incomplete, yet a decision must be made. “Decision making is a process of first diverging to explore the possibilities and then converging on a solution(s)" (Cooper & Schindler, 2011). Many decisions are made under uncertainty; that is, with limited information about their potential consequences. The outcome can vary greatly. Most of time uncertainty exists whenever people determine a decision on a daily basis. A decision to buy rental car insurance will be answered by using the concept of probability. This paper will focus on the application of various probabilities to formulate the decision under uncertainty. Discreet outcome from statistical analysis as well as trade-offs between accuracy and precision obtained by different probabilities concepts shall be evaluated. According to car accident statistic stats, auto, fatal, and drunk driving, the estimation of having an accident is of one in 16 cars. It has provided useful information to make important decision. There are a number of probability concepts that can be used in determining the results from the research data that was given. Probability is used to limit the uncertainty of the decision on whether to buy the rental car insurance. The probability concept that works the best and meets all of the criteria from the information that was gathered is the Bayes’ Theorem. The application of Bayes' theorem helps...
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...Computerizing a Paper System: Introducing Electronic Data Interchange to AIG Tamaerra Lodge IS535ON_J Professor Brooke January 22, 2012 Table of Contents Proposal Topic……………………………………………………………1 Business Problem……………………………………………....1 Benefits to Organization………………………………………...2 Business and Technological Approaches……………………….2 Audience………………………………………………………..3 Milestone 1 Restating the Problem……………….…………………………..4 Company Background………………..…………………………4 Business Issues…………………………………………………5 Benefits of Electronic Data……………………………………...5 Initial Business/Technical Approach …………………………...6 High Level Solution…………………………………………….7 References……………………………………………………………...8 1 Proposal Topic This proposal briefly discusses the timely process in which the risk management department of American International Group(AIG) uses to quote their commercial auto(CA) business lines, how it effects the deliverance of quotes to their clients and approaches to a solution. AIG uses a standardized commercial auto rating system(CARS) that electronically outputs a rating. The input procedure isn't electronic by any means and can be very timely and costly due to the number of people involved, the excessive amount of paper being used and the turn around time for their clients to receive a quote. If AIG adopted a more technical approach to their quoting procedure, time and paper can become...
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...Decision-Making Process Paper January 22, 2014 MGT 230 In just a few weeks during the summer of 2013, I had to make a hasty decision on purchasing a different vehicle. I was in a car accident that left the truck I had, from the day I got my license, totaled. Buying a car involves a lot of focus, attention to detail, and research. After taking a few days to recover from the chaos of the accident, I dove into car searching in all the wrong ways. I did complete many stages of the Decision-Making Process which I believe led me in the direction to make an optimizing choice. Stage one of the process had already been decided on for me when I got the news that I was not going to be getting my truck back but I still needed a vehicle. The next thing I had to do was come up with solutions to the predicament I was in. Managerial Decision Making describes there being two types of solutions when generating alternatives (Bateman & Snell, 2011, p. 90). The ready-made solution I came up with was to take what money I already had and buy an inexpensive car that would not require a car payment. My custom-made solution was to wait to get the money from the truck and get whatever vehicle I could afford even with a small car payment. The following two weeks was spent with my mother and I scanning Craigslist and CarMax for anything within our price range and comparable safety features. Many people told me I did not evaluate my alternatives enough because I was so set on getting a small...
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...Revision: June 2005 Responsible Executive: Vice-President, Academic and Provost Vice-President, Learning & Research (UBC Okanagan) Vice-President, Administration and Finance Title: Travel and Related Expenses Background & Purposes: Travel is a necessary component in the gathering and dissemination of information and knowledge. The purpose of this policy is to facilitate travel in support of the University’s mission while maintaining controls for accountability. 1. General 1.1. This policy applies to travel expenses paid from all University administered funds, including those from grants and contracts. The University will reimburse the cost of authorized travel expenses incurred by members of faculty and staff and, in special cases, students or other persons, provided that: 1.2.1. the traveller was travelling on University business, or in support of the University’s mission; and 1.2.2. the traveller had advance authority to incur travel expenses (for example, through recognition of travel in a grant budget); and 1.2.3. the expenses are reasonable, appropriately documented, and comply with University policies and procedures, or the policies and procedures of a granting agency or funding contract; and 1.2.4. the expenses are approved for reimbursement by at least one administrative level higher than the person claiming reimbursement. 1.3. Travel supported by research grants or contracts must comply with University policies and procedures unless specifically indicated otherwise...
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...the youngest drivers licensed in most states, are too immature to handle today's cars and roadway risk do not comprehend the implications of rash driving aggressive and reckless behavior than their adult counterparts . Want to experiment new things while driving like speeding up, racing etc. So, I think it is better to allow a 17 year to get the permit but not the licensed until 18 and it is important to give them plenty of time to make them drive in presence of their parents or the persons who holds the valid driving license. Firstly, I believe that the people below 17 years will not mature and they involve in more accidents than the people of 18 + years age. As we see daily in the news paper saying that high school student involved in road accident dies in the crash. The survey says that only 7% people account for driving license of the total population but 14% of them are in involved in fatal accidents , it is because of driving inexperience, lack of driving skills, risk taking , poor driving judgment and decision making, alcohol consumption and excessive driving during high risk hours. Most of the people feel more independent and counts the days to get the driving license but instead of driving carefully and they feel like it is fun and drives recklessly which is more dangerous not only to them but also for the people on the road. For the safety of the high school students and the one on the roads it’s better to rise the driving age to 18. Teens have a very poor concept...
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...eat and enough to entertain. Then one day, just as you’re getting back from work, as you’re pulling into your driveway, you find in utter horror, that your entire house is in ashes, smoke still drifting from the remaining pieces of wood. What despair and sadness! All that hard work would have gone down the drain since you would now have to start all over again in order to buy a new house. But then imagine not having to lose it all. Imagine having the option to call someone who can provide you with a large part of the money necessary to rebuild your house, as this was part of a financial agreement in case of such emergencies. What a relief! This is the essence of insurance. Insurance is a financial security that offers reimbursement for assessed risks that end up actually happening. In exchange for such coverage, the insured individual has to pay a regular premium. Though this reimbursement won’t bring back the individual’s burnt-down house or stolen car, it does offer options and choices with regards to dealing with the situation. It gives the individual peace of mind in knowing that should any danger arise, there will always be a way to overcome it. Without insurance, all loses sustained become unrecoverable, the owner loses it all, and has to replace it using more money from his or her own pocket. However, with insurance, this lose is less painful. The insurance company will pay for a large part of the loss. Though this concept of insurance is pretty straight-forward, it can...
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...THE FACT OF HIGHER COST OF AUTO INSURANCE POLICT FOR YOUNG DRIVERS Beomsuk Seo Johnson & Wales University Feinstein Graduate School RSCH 5500 Professor Martin W. Sivula Ph. D. November 12th , 2013 Author Note Beomsuk Seo, Master of Business Administration Hospitality Concentration, Feinstein Graduate School, Johnson & Wales University For course: RSCH 5500: Business Information and Decision Making Professor Martin Sivula, Ph.D. November 12th 2013 Contact: bks523@wildcats.jwu.edu Abstract The study was designed to define the fact of automobile insurance companies' higher prices of their policies for young drivers. Automobile insurance policies come in a board range of prices depending on the drivers’ status, experience, car condition, and so on. The majority of car insurance companies have various discount options depends on vehicle equipment, driving history and habits, driver's education and affiliation for their policy holders, yet young drivers who aged 24 and less pay approximately double price of other aged drivers because insurance companies recognize young drivers as high risky drivers. This study will qualitatively and quantitatively examine the level of risky driving behavior by aged groups with 400 samples. Then, the research will define the relationship between risky driving behavior and young drivers aged 24 and under. Additionally, the study assume that there is relationship between risky driving behavior and drivers experience...
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...Ana Gordina Application Paper - BUAD 307 April 20, 2015 Self-Driving Taxis (Uber): Secondary Market Research Proposal Description: Self-driving taxis will be provided by Uber and would create an additional type of transportation offered to consumers. These taxis will not require a human driver to be present at the wheel. The car will include the latest technology, including GPS systems and smart traffic control, which will get the customer from point A to point B upon request and with minimal delays. The concept of self-driving cars has become very popular in the recent years. About 10 years ago, people were suspect about the safety and overall feasibility of the self-driving machines, let alone self-driving taxis. Today, as more tech companies, like Google, are coming up with these cars and testing their performance, people become more willing to give up their seat at the wheel (Emarketer). Whenever new technology comes out in the market, marketers manipulate on how a specific customer segment will react to the product. Take for example, personal computers or internet and how nobody could have predicted that these products would become a commodity. Yet, today, people can’t picture living without them. Knowing what are the benefits and costs of the product make it easier to create a marketing plan for the product. Thus, this report will cover the following subtopics: 1. Benefits and costs of self-driving taxis 2. Potential pricing strategies and costs to the...
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...Abstract This paper goes into great detail of describing the association of risks with insurance. We do not think that there could be risks associated with insurance but, there is. The next focus in the paper is to determine what types of ethical misconduct can be foreseen if the supply and demand of insurance was too much to handle. This paper gives opinion of whether or not a person’s income should be a consideration as to whether or not they should be insured. Driving factors for the basis of a consumer seeking insurance and how it compares to the empirical measurements were discussed in detail as well as how to measure the demand for insurance. Lastly, the paper breaks down the lemons principle in terms of how it applies to health care and where we are today. Key words: insurance, health, supply, demand, insured What is insurance without risk? When we think of the term insurance the first though that comes to mind is something that we are given by our employers or others in the event that something should happen to us we are covered. One can say that insurance for consumers is almost the same as the insurance we purchase for our cars. The insurance covers us for medical procedures that might have to be incurred at the time of an accident. The proper description of insurance is that of the providing by a company to the consumer in the return of a premium or co-pay (Folland, Goodman, Stano, 2013). Insurance now has become more important to have than ever with all of...
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...Summary of research paper 2. Background of ABC Agency 3. Current business issues 4. Definition and history of the extranet 5. Proposed solution – CSR24 6. Recommendations 1. Topic of Research Paper This research paper will talk about introducing an extranet to enhance the current business options available to clients at an ABC Agency, an insurance brokerage firm. I will discuss the background of the firm, their current processes and their current and future goals. Implementation of a program called CSR24 will be discussed along with how it will benefit ABC Agency and service their clients to keep a competitive advantage in this ever changing market. “When a firm sustains profits that exceed the average for its industry, the firm is said to possess a competitive advantage over its rivals.” (Quick MBA, 2010) Lastly, this paper will give recommendations on the implementation of ABC Agencies extranet and how it will benefit them in the short and long run to meet the goals and objectives of the agency. 2. Background of ABC Agency ABC agency is an Insurance brokerage company that works with numerous insurance companies to find their clients the best insurance product for their needs. The agency offers insurance products for auto, home, life, health business and other types of markets as well. ABC Agency is the largest insurance agency in Nassau County and has a staff of 20. The staff includes customer service representatives, licensed insurance agents...
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...Natalie S. Jeffery Professor Jarrett Composition 1 8 October 2015 Human vs. Environment It is my belief that we as humans do have a lot of control over our environment. Every decision that we make affects it some way. The cars that we choose to drive is just one of the many ways that humans affect our environment on a daily basis. Even the simplest choices that we can make in life, like recycling, can make a huge impact in the future of our environment. Until you really stop and think about just how big our environment actually is, then you probably would not ever realize just how important it is to us as humans and just how much we do affect it. The Philosophy of environmental protection analysis issues should involve examination of four topics: limits of the environment to absorb human impact without deleterious change; need for change in human behavior to reduce or avoid adverse environmental impact; limits on the authority and jurisdiction of civil government; and need for civil governmental action toward environmental preservation (Staff Writers 2015). The Civil Government is used to protect our environment from humans as well as our property from the actions of others that may be trying to cause harm or destruction to it, but they are not authorized to do anything about the misuse of the environment. I personally think this is hogwash and we as Americans deserve a government that should be able to protect our environment from the people who are intentionally destroying...
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... 1/31/2011 Executive Summary This paper has been prepared to critical analyse the project management plan (PMP) of the Clift Project Village shopping centre barrier guard upgrade. The shopping centre multistorey car park was audited by its public liability insurer and they deemed the perimeter barrier fence not compliant to Australia standards and a danger to the public, the fence had to be replaced with a complaint fence. TJA Industries was approached to fix the problem which it completed with an Ingal anti-climb system with an integrated car barrier. The paper discuss the need and justification of the PMP for this construction project, areas that are discussed further in this paper are the audiences of the PMP and why they need to sight the PMP, the major stakeholder, the project owner (Village Investments) is found to be the main audience for this projects as the project owner needs to approve the PMP for the project to continue. In the last section of the body of the paper, it identifies the PMBOK guide as the base of the structure and contents of the PMP, it identify the PMBOK’s nine functions of project management are in the Clift’s PMP in some way with the major function having a lot more detail put into them. The major functions discuss were scope, time, cost, HR, quality and procurement management. One major lesson to be learnt is in the HR management plan with the stakeholder analysis, the school next to the car park was not inputted into the analysis and...
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...European Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.6, No.5, 2014 www.iiste.org Risk Exposures, Vulnerability and Mitigation Methods among Road Transport Workers in Nigeria Festus M Epetimehin PhD Joseph Ayo Babalola University, Ikeji- Arakeji fessy51@yahoo.co.uk, fmepetimehin@jabu.edu.ng Abstract This study examines risk exposures among Road Transport Worker and their methods of mitigation. A simple random sampling technique was used to select respondents from Lagos State. Nigeria. In order to determine how different types of risk exposures contribute to number of accidents on the roads, Cramer’s V was used to analyze and test the formulated hypotheses at 0.05 significant levels. The result of the findings revealed that age, driving experience, treatment seeking behavior and speed limit have significant relationship with drivers’ risk exposures. The study also reveals that younger drivers are more exposed to accident than older drivers and the treatment seeking behavior used by the Road Transport workers exposed them as well as their families to financial danger. In line with these findings, it was recommended that Road Transport Workers, RTW should use a formalized means to mitigate their losses. Keywords: Risk, Vulnerability, Mitigation, Risk exposure, Accident, Insurance 1.0 Introduction Risk is an integral part of mankind. It is a permanent and important part of life. Everyone is exposed to various kind of risk including their...
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...customer satisfaction is a key driver of performance, making its measurement and management crucial. Most studies on customer satisfaction take an aggregate standpoint and do not consider segment-specific differences in attribute importance. In this article, the authors report on customer satisfaction with ambal auto (p) Ltd. They hypothesize that personal, situational, and product factors moderate the relationship between attribute performance and overall satisfaction. The “service-dominant logic” focuses on the firm and the customer co creating value, as defined by the customer. Achieving this orientation requires firms to understand which components of the service concept are most important to different subsets of customers. However, research on the relative importance to customers of core and peripheral service components has produced mixed results. The results show that these factors indeed influence Attribute—Performance—Satisfaction Relationship The present study investigates this relationship for salespeople in a business he theoretical justification for a positive impact of salespeople’s job satisfaction on customer satisfaction is based on the concept of emotional contagion. The analysis is based on a dyadic data set that involves judgments provided by salespeople and their customers collected across multiple manufacturing and services industries. Results indicate the presence of a positive relationship between salespeople’s job satisfaction and customer satisfaction...
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