C5

Question 1

How is a claims settlement achieved?

Answer 1

Payment of money
Paying for repairs
Replacement eg glass
Reinstatement (seldom used - insurers have to take control or repair rebuild themselves)

Question 2

Which is the most common & easiest way to settle claims?

Answer 2

Payment of money

Question 3

What are the key considerations you should bare in mind when considering & making a settlement?

Answer 3

1) Replacement & reinstatement only apply if state in policy
2) Explanation of claims method selected must be provided
3) Some circumstances where insurer will pay someone other than the insured

Question 4

What are Surge Events?

Answer 4

Insured event leads to a higher than normal volume of claims, placing greater demand on the insurer’s claims resources

Question 5

Do insurers need to predict for a surge event?

Answer 5

Yes

Question 6

In times of surge, what is difficult for insurers?

Answer 6

Request docs / quotes for repair & : . customer descriptions / photos may be sufficient to validate the loss

Question 7

Global Reserving Process

Answer 7

Responsibility of the actuarial department of the insurance company as it looks at the overall reserving process and its impacts on the business as a whole (aka ACTUARIAL RESERVING)

Question 8

Claims Reserving Process

Answer 8

Checking data integrity
Collating historical data
Projectoin of claims