P92 Chapter 1

• 1. Life
• 2. General
• 3. Composite

• 1. Proprietary
• 2. Mutual
• 3. Captive
• 4. Takaful

• - accident & health
• - motor
• - aviation
• - property
• - liability

• Long term business
• - life & annuity
• - permanent health
• - pension fund management
• - linked long-term

• - Tax efficient way of transacting risk transfer
• - paying premiums based on the company's own experience
• - avoidance of direct insurer's overheads
• - ability to purchase reinsurance at a lower cost than conventional insurers

Shariah

1. gharar - uncertainty

2. maisir - gambling

3. riba - interest

1. mutuality & co-operation

2. shared responsibility

3. joint indemnity

4. commmon interest

5. solidarity

• 1. Types on insurance companies (propietry, mutuals, takaful, captive)
• 2. Lloyds
• 3. direct insurers
• 4. internet
• 5. indempendent intermediaries
• 6. agents
• 7. building societies
• 8. banks
• 9. retailers & affinity groups
• 10. travel agents & tour operators
• 11. aggregators
• 12. the state
• 13. self-insurance

A typical direct insurer would have a main administrative centre and maybe an u/w centre.

It would not need an extensive branch network as most of their business is transacted over the telephone.

• The main factors to consider when deciding the location of the insurer are:
• - Cost of office space
• - proximity of a suitable workforce

• 1. offering a relationship focus rather than an enquiry focus
• 2. understanding of customer buying patterns
• 3. move to a proactive rather than a reactive environment
• 4. adopt a "total relationship management" approach
• 5. enhancing / complimenting additional revenue generation efforts

• 1. direct mail
• 2. telemarketing
• 3. direct selling
• 4. cross selling
• 5. customer service
• 6. email
• 7. internet
• 8. face to face personal attention

• - identify stakeholders
• - find out their expectations
• - identify stakeholder's influence
• - develop good relationships with key people
• - identify views and attitudes towards company strategies & activities
• - establish supportive stakeholders and find out who are not supportive
• - find out how to win antagonistic stakeholders over.

• 1. Shareholders
• 2. Policy holders
• 3. Investment analysts
• 4. Reninsurers
• 5. other insurers (competitors)
• 6. employees
• 7. Government & regulators

...the performance of the company which depends on market perception of the future, influenced by:

• * type and spread of business
• * profitaility
• * distributable reserves
• * dividend policy
• * management policy & ability
• * general economic trends

• 1. compliance with the code, relevant laws & regulation
• 2. highest ethical standards and integrity
• 3. act in the best intersts of each client
• 4. high standard of service
• 5. treating people fairly (non-discrimination)

• 1. member companies of the IUA (Internatioin Underwriters Association)
• 2. other companies operating in London
• 3. EU companies
• 4. contact offices for foreign companies
• 5. P & I clubs
• 6. Pools - International Oil Insurers & British Insurance (Atomic Energy) Committee
• 7. Lloyds
• 8. Brokers

• 1. polictical & economic stability
• 2. Geographical location
• 3. quality transport system
• 4. Highly qualified workforce
• 5. avialability of office space
• 6. English is the business language
• 7. Stable legal & regulatory environment
• 8. Time zone
• 9. Foreign presence
• 10. Developed financial centre
• 11. Centralisation

• - the business only pays for the functions that it needs
• - gauranteed level of service set out in contract
• - budgeting advantages
• - access to specialist skills
• - may lead to further partnership opportunities
• - increased flexibility

• - access to business it may not normally have opportunities to see
• - be able to obtain business in parts of the world where it has no office
• - have the benefit of local expertise and knowlege
• - acquire income at low cost & risk