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28 Cards in this Set
- Front
- Back
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Which groups make up the insurance market? |
Buyers (insureds), intermediaries (inc brokers and sellers (insurers)who |
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Who are “proposers” of insurance? |
Private individuals; Corporate customers; Public bodies; Clubs and associations; sole traders and partnerships |
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Who are “intermediaries”? |
Advisers; Brokers and Lloyd’s brokers |
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Who are “sellers”? |
Composite companies; specialist companies; direct insurers; captive insurers; Lloyd’s and Takaful insurerswhat |
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What are “Proposers”? |
Those who buy insurance are known as proposers during the period leading up to the contract of insurance |
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What are the 5 main types of buyers of insurance? |
Private individuals Commercial customers Public bodies Clubs and associations Sole trader and partnerships |
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What is the role of intermediaries? |
To bring buyers and sellers together |
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What is the role of intermediaries? |
To bring buyers and sellers together |
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What type of insurance would ‘private individuals’ usually buy? |
Motor, household (large part of the market) Also, travel and private medical insurance. |
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What type of insurance would ‘commercial customers’ generally buy? |
In commerce, large amounts of money are spent on a wide variety of insurance products. Generally, specially designed insurance packages will be tailored to meet customers needs. |
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What type of insurance would ‘public bodies’ want? |
Conventional insurance, such as property or motor or specialised cover. (Inc professional indemnity insurance) |
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What type of insurance would ‘public bodies’ want? |
Conventional insurance, such as property or motor or specialised cover. (Inc professional indemnity insurance) |
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What type of insurance would sole traders and partnerships need? |
As they could be plumbers, builders or a multitude of different trades or professions, they may need insurance to protect their business and earning potential. |
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What are composite insurers? |
They accept many different classes of business and may deal with motor or liability cases |
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What are specialist insurers? |
They offer a limited range of insurances, often as a single type of cover such as life insurance. |
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What are direct insurers? |
These insurers only deal direct with the public and most transactions are phone or web based. |
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What are captive insurers |
They are established as subsidiaries of companies in order to accept risks that are often seen as unpredictable or uninsurable by the conventional insurance market |
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What are incentives of setting up a ‘captive insurance’? |
-full advantage of the parents group risk control (ie. more favourable premiums) -avoiding the overheads of the conventional insurer -having direct access to reinsurance markets |
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What is Lloyd’s? |
A society of underwriters, whose members accept insurance business. |
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What are Takaful insurers? |
A type of insurance that has its roots in the Islamic financial service industry. |
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What are reinsurers? |
Those that offer insurance to insurers. |
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What are two reinsurance centres? |
Lloyd’s International underwriting association of London (IUA) |
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What are the 5 stages of how the market works? |
1. The proposer offers a risk to the intermediary 2. The intermediary obtains the best quote from one insurer 3. The proposer accepts the terms and the policy is issued 4. The proposer now becomes the insured or PH 5. The insurer wishes to share the risk because it is too large, so places it with a reinsurer. |
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What are reinsurers? |
Those that offer insurance to insurers. |
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What are two reinsurance centres? |
Lloyd’s International underwriting association of London (IUA) |
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What are the 5 stages of how the market works? |
1. The proposer offers a risk to the intermediary 2. The intermediary obtains the best quote from one insurer 3. The proposer accepts the terms and the policy is issued 4. The proposer now becomes the insured or PH 5. The insurer wishes to share the risk because it is too large, so places it with a reinsurer. |
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Does the reindeer have a contractual relationship with the insured? |
No |
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Which type of insurer does not offer insurance to the general public? |
Captive insurers |
