AI Chapter 2 Flashcards

Question

What is bancassurance?

Answer 1

An arrangement between a bank and insurance company to sell insurance products to bank customers ## Footnote This has led to several mergers and acquisitions worldwide.

Answer 2

Use web-based extraction tools to collect information on insurance products ## Footnote While they save time, they may affect the accuracy of quotations due to limited questions.

Answer 3

A method for individuals and corporations to transfer risk to reinsurers ## Footnote Reinsurance can be done on an individual risk basis, event basis, or portfolio basis.

Answer 4

To smooth peaks and troughs in trading results and protect portfolios ## Footnote It helps spread the cost of large losses over time.

Answer 5

Reinsurance arranged on a single risk basis ## Footnote This is different from treaty reinsurance, which covers a range of risks.

Answer 6

Co-insurance involves sharing risk among insurers, while reinsurance transfers risk to another insurer ## Footnote The insured does not have a contractual relationship with the reinsurer.

Answer 7

Professionals who manage risk pools, assess risks, and determine terms and premiums ## Footnote Their role is critical in ensuring the profitability and sustainability of insurance products.

Answer 8

Deal quickly and fairly with claims, distinguish between real and fraudulent claims ## Footnote They also determine the realistic cost of claims prior to payment.

Answer 9

Investigate claims, determine policy coverage, and negotiate settlements ## Footnote They often handle larger claims that require detailed investigation.

Answer 10

Act for the insured and conduct forensic analyses to determine the cause of loss ## Footnote They gather evidence and establish negligence or policy exclusions.

Answer 11

Apply probability and statistical theory to insurance and risk management problems ## Footnote They are often associated with life insurance and future liability predictions.

Answer 12

Identify, analyze, and control risks that threaten the business ## Footnote They play a key role in pricing and reserving methodology.

Answer 13

Ensure the firm abides by rules and regulations and report to the governing body ## Footnote They also perform the role of money laundering reporting officer.

Answer 14

Monitor and evaluate risk management and governance processes ## Footnote They assess the effectiveness of company operations beyond financial risks.

Answer 15

The largest market association in the UK, representing 300 member companies ## Footnote ABI gathers market statistics and plays a major role in public relations.

Answer 16

* Specialist reinsurance companies * Lloyd's syndicates * Insurance companies acting as reinsurers ## Footnote These insurers often have substantial capital due to the high risk involved.

Answer 17

Compensate victims of accidents caused by uninsured or untraced motorists ## Footnote MIB operates under agreements with the government for compensation.

Answer 18

* Personal accident * Sickness * Private medical insurance * Short-term income protection * Critical illness ## Footnote These cover various health-related financial risks.

Answer 19

Covers legal liability to pay compensation for death, injury, or disease ## Footnote This includes employers liability, public liability, and products liability.

Answer 20

Loss or damage to aircraft and legal liability to third parties ## Footnote Aviation cargo is covered under marine policies.

Answer 21

Protects businesses from first and third-party losses arising from cyber attacks ## Footnote It includes costs for investigations and legal defenses against data loss claims.