The fundamental nature of the GR market Flashcards
What is self-insurance?
When an employer decides to carry the cost of paying the benefits themselves. This is normally when they employ a large number of people to make reasonable predictions as to what their future claims will be from looking at their claims history.
What is a captive insurer?
A captive insurance company exists solely to handle the risks of the company that has chosen to self-insure its benefits.
What is the ABI?
The Association of British Insurers is the trade association for insurance companies in the UK. Its role is to represent the collective interest of its member companies and its remit extends across all classes of insurance.
What is the CII?
The Chartered Insurance Institute is a professional body for people working in the insurance industry. Its most important role is its educational one.
What is the ILAG?
The Investment and Life Assurance Group’s main objective is advancing the interests of providers and distributors of life, health, pension and investment products in the UK. Its membership includes intermediaries, reinsurers, insurers, related service providers and professional bodies.
What is the APFA?
The Association of Professional Financial Advisers is the voice of the financial adviser, promoting the value of financial advice and the interest of financial services. It represents the interests of their membership to the regulatory and policy makers who have an impact on the FA market place and the business operation of FAs.
What is multinational pooling?
It is a way multinational companies can meet their global employee benefit needs.
Under multinational pooling contracts, local GR contacts held in different countries are drawn together into one pool. Each local contract is administered by the local insurer, but when they form part of a pool then an additional contract exists between the client and the company that manages the pool.
Where a multinational company has its own pool, what is a stop-loss arrangement?
Where a loss will be written off immediately and each year’s pooling account is created without any regard for what has occured in any other year.
Where a multinational company has its own pool, what is a loss-carry-forward method?
This allows for the pool manager to carry forward any loss to subsequent years.
