2/13/12 Chapter 6 - Agenda • Rating and Ratemaking • Underwriting • Production • Claim settlement • Reinsurance • Investments Copyright © 2011 Pearson Prentice Hall. All rights reserved. 6-1 Rating and Ratemaking • Ratemaking refers to the pricing of insurance and the calculation of insurance premiums – A rate is the price per unit of insurance – An exposure unit is the unit of measurement used in insurance pricing premium = rate * exposure units – Total premiums
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Josh Bridges International Marketing (MWF: 10-1050) Case Study 2 – Munich Re 8/29/2014 Since the late 1800s‚ Munich Re has been a leader in the field of reinsurance business‚ and is the largest reinsurance company in the world. The company has been tasked with many challenges throughout its tenure‚ but continues to strive to be better. Munich Re has made changes to both its marketing strategy and product mix to help counteract the emergence of various risks and obstacles. The most innovative
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Business Regulation Simulation Alumina‚ Inc. manufactures auto parts and aluminum packaging material‚ mines bauxite‚ and refines and smelts aluminum (University of Phoenix‚ n.d.). After reviewing the simulation‚ it is easy to see how a business can be the target of legality. In this scenario‚ fingers were pointed at Alumina‚ Inc. for contaminated water that may have been the cause for a case of leukemia in a female child. In any business‚ management teams must take caution that tort and regulatory
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7 Types of Reinsurance 1. Facultative Coverage This type of policy protects an insurance provider only for an individual‚ or a specified risk‚ or contract. If there are several risks or contracts that needed to be reinsured‚ each one must be negotiated separately. The reinsurer has all the right to accept or deny a facultative reinsurance proposal. 2. Reinsurance Treaty Unlike a facultative policy‚ a treaty type of coverage is in effect for a specified period of time‚ rather than on
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Initially‚ the VaR has been anticipating to quantify the available risks in derivatives markets‚ but it has grown widely and it has now been applied in measuring all kinds of risks‚ primarily credit and market risks. It also developed from a tool that quantifies risk to a tool that is applied in active risk management. Today VaR has shifted beyond application in financial institutions. In the beginning‚ companies with largely exposed to financial markets used other kinds of activities before spreading
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BORAD OF DIRECTORS Chairman-cum-Managing Director - Shri N S R Chandraprasad General Manager & Executive Director - Shri A. V. Girija Kumar Joint Secretary (IF)‚ Ministry of Finance‚ Govt. of India - Shri Anurag Jain Part-time Non-official Director - Shri Moti Lal Sharma Part-time Non-official Director - Shri Amitav Kothari CMD‚ UCO Bank - Shri Arun Kaul CORPORATE MANAGEMNT ACHIEVEMENTS WE ARE: The fastest growing Non-life Insurance Company in India The
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Justification for an Internal Control System Cynthia Kinney ACC544/Internal Control Systems June 27‚ 2011 Gary Godfrey Justification for an Internal Control System An internal control system is described as a way to control an organization better‚ minimize risk‚ reduce loss‚ and achieve goals. Two approaches‚ political and insurance‚ are used to justify the need for this type of system. Issues such as security valuation‚ asset allocation‚ optimization‚ and performance are considered with
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Definition of Casualty Insurance Naperville Contrary to your expectations‚ casualty insurance is not limited to one type of insurance policy. Although the name implies death‚ it covers damages‚ loss‚ and liabilities pertaining to property‚ vehicle‚ workers compensation‚ homeowners‚ which the victim is injured due to occupational hazard and acts of omission on the part of the business owner or individual. In short‚ this insurance policy covers liability and losses due to injuries to a person and
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SEMINAR 4: FRIDAY 7th NOVEMBER 2014 ASSET PRICING Seminar Questions to be completed before class 1. Explain‚ using examples the difference between systematic risk and unsystematic risk. 2. Why is it useful to calculate returns on assets using either a one-factor model such as‚ CAPM or a multi-factor model such as‚ APT? 3. Answer questions 8 and 10 on page 316 of the Hillier et al. (2013) text. 4. Multifactor Model The monthly return on an asset‚ Rs is determined by the following equation: Rs = 0
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Using the Risk Analysis technique from BABOK 9.24‚ demonstrate: 1. Your understanding of the risk tolerance levels of the organization Enterprise risk management (ERM) has become a critical practice in organizations that are dedicated to managing uncertainty and its effect on achieving organizational objectives. ERM helps organizations focus on the most relevant risks to achieving an organization’s goals and objectives‚ both from an operational‚ as well as a strategic‚ perspective. How much risk
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