Please enable JavaScript.
Coggle requires JavaScript to display documents.
Risk management tools (2) (5 ways of diversifying assets and liabs…
Risk management tools (2)
5 ways of diversifying assets and liabs
different lines of business
different geographical areas
different reinsurers
different asset classes
different assets held within a class
four management control systems
data recording
accounting and auditing
monitoring liabilities
taking special care over options and guarantees
underwriting (assessment of potential risks so that each can be charged an appropriate premium)
types
medical
lifestyle
occupation
leisure pursuits
normal country of residence
financial
assess whether the proposed sum assured is reasonable relative to the financial loss that the applicant would suffer if the insured event occurs
occupation and salary
proposed sum assured
details of other insurance products held by applicant
whether applicant has an insurable interest in the insured life
reasons for (SAFER)
examples of special terms
addition to premium
reduction in benefit
exclusion clauses
deferral of cover
rejection of cover
claims control systems
why needed
mitigate consequences of an financial risk that has occurred- they guard against fraudulent or excessive claims
examples
requiring claimants to submit a claim form
requiring evidence of eligibility to claim (e.g. death certificate, doctor's certificate for ill-health, underwriters' assessment
continued evidence of eligibility to claim e.g. for long-term sickness or long-term care insurance
requiring estimates of the extent of a loss e.g. by the policyholder, or a company approved by the insurer, or by a loss adjuster