保险学Treisch1eCh23.ppt

Functions and Organization of InsurersChapter 23 Chapter Objectives Explain why “production” in insurance is called “selling” elsewhere Explain the meaning of underwriting Show how insurance premiums are calculated and adjusted Understand the concept of credibility as it relates to rate making Differentiate between experience and retrospective rating Know what fair claims settlement laws are Understand the advantages and limitations of reinsurance Functions of Insurers The functions performed by any insurer necessarily depend on The type of business it writes, the degree to which it has shifted certain duties to others, the financial resources available, the size of the insurer, the type of organization used, etc. These functions, which are normally the responsibility of definite departments or divisions within the firm, are Production Underwriting Rate making Managing claims and losses Investing and financing Accounting and other recordkeeping Providing miscellaneous other services Such as legal advice, marketing research, engineering, and personnel management Production (Sales) One of the most vital needs of an insurance firm Is securing a sufficient number of applicants for insurance to enable the company to operate Often called production in the context of the insurance industry Corresponds to the sales or marketing function in an industrial firm This is a proper term for insurance because the act of selling is production in its true sense Insurance is an intangible item and does not exist until a policy is sold Underwriting Includes all the activities necessary to select risks offered to the insurer in such a manner that general company objectives are filled In life insurance, underwriting is performed by home or regional office personnel Who scrutinize applications for coverage and make decisions as to whether they will be accepted And by agents, who produce the applications initially in the field Underwriting In the property-liabilit