insurance n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Insurance PowerPoint Presentation
Download Presentation
Insurance

Loading in 2 Seconds...

play fullscreen
1 / 10

Insurance - PowerPoint PPT Presentation


  • 105 Views
  • Uploaded on

Insurance. This presentation is based on ARGE Commerce ( 2003): Insurance, Manz Verlag Schulbuch, Wien Mag. Maria Peer. Economic Importance. Businesses and individuals face risks – fire , lawsuits , natural disasters , theft , illness , business interruption , accidents , death

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Insurance' - prisca


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
insurance

Insurance

This presentation isbased on

ARGE Commerce (2003): Insurance, Manz Verlag Schulbuch, Wien

Mag. Maria Peer

economic importance
EconomicImportance
  • Businessesandindividualsfacerisks– fire, lawsuits, naturaldisasters, theft, illness, businessinterruption, accidents, death
  • Controlthefinancialaspectsofthefuture
  • Contractualagreement– onepartyagreestocompensatetheotherpartyforlosses
  • Insurerchargestheinsured a price – theinsurance premium
  • Transformation ofrisksintocosts
the pooling of risk
The poolingofrisk
  • Insurance based on theideathat a certainrisk
    • Occursonlyrarely in a lifetimeof a singleperson –
    • amountsto a higherfrequence, ifyouregard 10,000 people
  • The insuredpaypremiuminto a commonpool – themoneycollectedisusedto
    • Pay compensation
    • Cover administrative costs
    • Buildupreservesforunforeseeablerisks
    • Earn a profitfortheinsurancecompany
the insurance premium
The insurance premium
  • Whatthepolicy holder hastopaytotheinsurerfortaking on theinsurancecoverageof a risk. Premium consistsof
  • Risk premium
  • Administration costs
  • Organisation costs
  • Safe premium (lifeinsurance)
  • Additionalfees
how are premiums fixed
Howarepremiumsfixed?
  • Howlikelyisitthat a certaindamageoccurs (e.g. a broken leg in a skiingaccident)
  • Probabilityoflosscanbeestimatedusingrecords
  • The highertherisk, thehighertheamountofthepremium
  • Nocoverageofrisksarisingas a resultof war, tradinglossesoractsofGod
re insurance and co insurance
Re-insuranceand Co-insurance
  • Re-insurance:sharingriskswhicharetoo large foroneinsurer – taking out insurancewithotherinsurancecompanies
  • Co-insurance: sharingrisks, a fewinsurersparticipate in theissueofonepolicytogether
    • thepolicy holder isinformedaboutthedivisionoftherisk
    • directinsurersare registered in thepolicywiththeirsharesoftherisk
    • Theygetpartofthepremium
    • The leadinginsurancecompanytakesoverthemanagement
insurance contract parties
Insurance contractparties
  • Insurer: partywhotakes on theinsurancecoverageof a riskagainstpaymentof a premium
  • Policy holder: partywhowishestheinsurancecompanytotake on theinsurancecoverage – fulfilsthedutytopaythe premium
  • Insured: policy holder orcontractistaken in favourof a thirdperson
  • Beneficiary: with a lifeoraccidentinsurance, policy holder canappointoneormorepersonswhoshouldgetthecompensation
  • Claimant: thepersontowhomthepolicy holder must paythecompensation. The policy holder claimscoveragefromtheinsurer
the policy
The policy
  • Documentabouttheinsurancecontract – pieceofevidencethat an insurancecontracthasbeentaken out + contentofthecontract
  • Basically an insurancepolicyshows:
questions
Questions
  • Who cangiveyouinformationabouttaking out insurance?
  • Whatis an insurancepolicyandwhatisshown on it?
  • Howarepremiumscalculated?
  • Discusshowre-insuranceworksandwhatroleitplays in thesolvencyoftheinsuranceindustry?
  • Can all risksbeinsured?
  • Explainthebasicconceptofinsurance.