Functions within insurance organisations Flashcards
(19 cards)
What is the role of the underwriting department?
To calculate premiums and control the extent of cover given under policies.
What is the structure of the underwriting department?
Director of underwriting, head of department, class underwriters, section supervisors, underwriters, assistant/trainee underwriters.
What is a managing general agent (MGA)?
An insurance broker with binding authority from an insurer, performing tasks like assessing risk and paying claims.
What is the purpose of risk management in insurance firms?
To identify, analyze, report, and monitor risks to improve business operations and performance.
What is a risk register?
A central data source on all risks faced by the company, kept current by the risk management department.
What is the role of the claims department?
To ensure fair and equitable settlement of claims according to policy terms.
What is delegated authority in insurance?
Allowing other parties to perform underwriting or policy administration tasks to acquire more business and reduce expenses.
What is the role of the compliance department?
Ensuring operations are compliant with regulatory requirements and communicating updates to staff.
What is the role of the actuarial department?
Assessing and calculating risks, setting premiums, and ensuring financial stability through reserving and capital management.
What is customer relationship marketing?
Using information about customers to build strong
What is a coverholder?
A broker or agent with authority to underwrite on behalf of an insurer.
What is a line slip?
A facility allowing brokers to place similar risks with multiple insurers.
What is a bordereaux?
A report listing risks or claims under a delegated authority.
What is a CAT model?
A tool that simulates disaster scenarios to estimate insurance losses.
What is strategic planning?
Setting long-term goals and deciding how to achieve them.
What is a SWOT analysis?
A tool to assess Strengths, Weaknesses, Opportunities, and Threats.
Calculation Kernel
The model used in the quantification of capital requirements for all risk categories
Risk assessment criteria
Impact and probability
Inherent vs residual risk
Inherent - Risk without any controls applied
Residual - risk ‘left’ after controls applied
