insurance intermediary

K.P.B. HINDUJA COLLEGE

INTERMEDIARIES AND ACTUARIES OF INSURANCE

Presented by : GROUP NO. 8 Hemi Singh - 21Moumita Maity - 29Prakash Chaurasia - 46Priyanka Joshi - 50Kunal Katariya -70Nishitha Menon -68Arwa Merchant -67

INTERMEDIARIES OF INSURANCE

INTRODUCTION : WHAT IS INSURANCE? An arrangement by which a company or the state

undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium.

WHO IS INTERMEDIARY? A person who acts as a link between people in

order to try and bring about an agreement; a mediator.

INSURANCE INTERMEDIARY : Brokers or agents who represents consumers

in insurance transactions. Insurance intermediaries are contracted with multiple insurance companies so they can focus on matching their clients needs with the most suitable insurance products.

QUALITIES OF A INSURANCE INTERMEDIARY?

Adverse selection

Role of intermediar

y compensati

on

THE REGULATION OF INTERMEDIARIES :

Agents

Brokers

Insurance intermediaries act

1999(No 31 of 1999)

ROLE OF INSURANCE INTERMEDIARY :

Innovating marketing

Disseminating of

information of consumer

Dissemination of

information to the

marketplace

Sound competition

Spread insurers

risks

Reducing costs

ACTUARIES OF INSURANCE

WHO IS AN ACTUARY ? Actuaries are experts who perform actuarial

analysis of insurance rates, rating procedures, rating plans, and schedules of insurance companies. These are professionals who are experienced in reviewing and analyzing insurance operations, reserves and underwriting procedures and provide technical assistance regarding actuarial matters to policy examiners and other technical staff.

THEIR MAIN ACTIVITIES :

pricing Financial management

Corporate planning

WHERE DO ACTUARIES WORK? Life

insurance

Pension funds

General insurance

Health insurance

Investments

Government

ROLE OF ACTUARIES IN INSURANCE Evaluating the likelihood of future events

Designing creative ways to reduce the likelihood of undesirable events

Decreasing the impact of undesirable events that do occur.

undesirable events can be both: a. Emotional b. Financial.

Gathering analytical skills, business knowledge and understanding of human behavior to design and manage programs that control risk.

RISK = UNCERTINITY Actuaries engage in risk management

programs.

WHAT HAPPENS IF RISK MANAGEMENT PROGRAMS DEVELOPED BY ACTUARIES DIDN’T EXIST ?

TECHNIQUES TO CONTROL RISK :

Offsetting one risk

with another

Risk is a matter of perspecti

ve

Focus on catastrophic risks

INDIAN ACTUARIES – ROAD AHEAD: IRDA (The Insurance Regulatory and

Development Authority of India) has stated “ We have reached a situation where the role of appointed actuaries has to be enhanced significantly so that general insurers are in a position to cope with public demand for non-life products and at the same time ensure the availability of solvency on a continuous basis.”

LIST OF TYPICAL ACTUARIES PROJECT :

Analyzing insurance rates, such as for cars, homes

or life insurance. Estimating the money to be set-aside for claims

that have not yet been paid. Participating in corporate planning, such as

mergers and acquisitions. Calculating a fair price for a new insurance

product. Forecasting the potential impact of catastrophes.

Analyzing investment programs.

THANK YOU