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Flashcards in Product Design And Stakeholders Deck (31):
0

Who are the stakeholders?

Insurer
Customer
Regulator
Distributor
State

1

What needs does IP meet?

Replacement income after employee benefit
Monthly loan repayments
Other premiums
Locum protection against losses and costs of temp staff

2

What needs does CI meet?

Medical costs
Repay mortgage or other loan
Income from purchasing annuity
Key person insurance, buy out partner
Rehab
Change of lifestyle

3

What needs does LTCI meet?

Avoid dependence of family and friends
Something like indemnity
Finance expected cost of care
Finance expected levels of assistance
Comfort not relying on state benefits
Provision for at home/residential/medical care
Payments increasing as disability worsens

4

What needs does PMI meet?

Not going bankrupt due to medical costs
No waiting
Higher standard of accomodation
Doctor of choice
Local hospital
Costs if no state system
Costs if salary exceeds those allowed for state benefit

5

What needs does micro insurance cover?

Working on low incomes
Basic components
Affordable
Peace of mind
Simple

6

Along with customer needs, what else is important to attract customers?

Peace of mind
Simple
Clear
Affordable
Desired level of guarantee versus reviewable premiums or benefits

7

When would a PMI provide cash?

Health cash on certain events e.g. Physio/glasses
Daily benefit if policyholder takes state treatment which has no cost

8

What are the types of budget PMI?

Micro insurance (budget, simple, clear)
Health cash (cash on certain events like new glasses)
MME (lump sum to pay for major surgery like cancer treatments)
Dental plans
Excess plan (PMI with excess)
Optical plan
Personal accident (cash on loss of limb)
Waiting list plan (PMI is state waiting over 6 weeks)

9

For a dental plan, what are the two bases?

Capitation - insurer and dentist agree fixed sum per annum per mouth insured
Indemnity - insurer covers actual cost of treatment

10

For a personal accident plan which 3 things should be thought about?

Measure of exposure to which premiums are related
Claim characteristics - High claims, few delays, stable frequency
Risk and ratings factors - depends on risk of job, premiums often independent of sex and age

11

How does IP provide peace of mind?

Keep dependents lives the same when ill/lower paid job
Repayment of high cost loans like mortgage

12

How does CI provide peace of mind?

Financial peace of mind from expensive surgery etc.

13

How does LTCI provide peace of mind?

Financial security for long term care costs
Time not taken of family or friends

14

How does PMI offer peace of mind!

If no state benefit, cost of treatment may cause financial problems
If state benefit, peace of mind from no waiting list (no income while wait),
Quality of treatment
Quality of accomodation

15

What are the problems of simplicity and clarity for IP, that might annoy policyholders

Need to apply benefit limits
Payouts not always linked to current salary
Complex underwriting putting people off
Not paying claims due to exclusions
Objective criteria are hard to come up with

16

What are the problems of simplicity and clarity for CI, that might annoy policyholders

Exclusions
Point of claim underwriting not laying out
Differing definitions between insurers
More severe definition than normal persons understanding

17

What are the problems of simplicity and clarity for LTCI that might annoy policyholders

Cash inadequacy versus the claim pays for care
Maximum benefit
Limited time paid for
Different levels create complexity
ADL must be explained to purchaser. Not simple.

18

What are the problems of simplicity and clarity for PMI, that might annoy policyholders

Underwriting and acceptance Not understood
Limits and exclusion clauses confusing
Pre authorisation is not liked
Hospital bands not liked
Cost sharing not understood

19

In policy design factors, explain finance and capital req

Benefits and charges should minimise fin req
Gtees influence starting reserve hence fin req

20

In policy design factors, explain options

Ensure need for them
Ensure adequate reserves at start

21

In policy design factors, explain culture

Reflects style and culture of company

22

In policy design factors, explain consistency

Charging and benefit structure similar to other products

23

In policy design factors, explain ext xs/equity

May be necessary to spread expenses across products
Must keep rights for policyholders equal

24

In policy design factors, explain regs

Accurate reports filed
Insurer will stay solvent
Customer detriment on sales, admin, claim minimised

25

In policy design factors, explain marketability

Structure charges benefits not far from comp
Salesmen trained

26

In policy design factors, explain profitable

Sufficient margins for profit
Remaining sellable

27

In policy design factors, explain competition

Structure charges price close to comp

28

In policy design factors, explain uw

Exclude pre existing condition
Fundamental to design and price

29

In policy design factors, explain reinsurance

Expertise and training
Influences policy limits

30

In policy design factors, explain ditribution

Sufficient sales incentive to encourage distribution
But not misselling!