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CHAPTER 1: THE LIFE ASSURANCE MARKET - Coggle Diagram
CHAPTER 1: THE LIFE ASSURANCE MARKET
HISTORY BACKGROUND OF THE LIFE INSURANCE
The life insurance concept was conceived as early as 2,800 BC when it was being applied by merchant to protect themselves against the loss of their property.
The first recorded life insurance contract in England was dated 1583 and it was on the life of William Gybbon.
The earliest mortality table was compiled in 1693 by Halley.
The insurance infancy then was mainly based on the British System because of the advent of colonialism.
Example of life insurance company in Malaysia are etiqa,allianz, great eastern and many more.
WHAT IS LIFE INSURANCE?
It is a business of providing payment of sums of money of dates in the future. It depends on the satisfaction of specified condition contingent on the death survivor or state of health of the person insured. Insurance is a matter of savings. There is no other savings that will get as fast as insurance policies.
MARKET SEGMENTATION
1) The children's market
2) Young adult market
3) Family and mature age market
4) The business insurance market
5)Professional insurance market
6) The retirement market
7) The savings market
a) Those which provides compensation for death or disability.
b) Those which provide and investment medium.
FACTORS INFLUENCING LIFE INSURANE BUSINESS
a) PHYSICAL HAZARD
Factor contribute to the loss for example are hobies, physical, age and many more.
b) OCCUPATIONAL HAZARD
Pilot and crane operator
c) MORAL HAZARD
Good faith and relationship attitude
REASON WHY SAVINGS WITH LIFE INSURANCE IS A BETTER IDEA?
1) The only savings that protected
2) The only savings that provides tax relief
3) The savings that comes with consistent rewards.
4) The savings that provide large mature sum
5) The savings that provides you with retirement income.
LIFE INSURANCE BODIES
MALAYSIAN INSURANCE INSTITUTE (MII) 1964
LIFE INSURANCE ASSSOCIATION MALAYSIA (LIAM) 1974
ACTUARIAL SOCIETY MALAYSIA (ASM) 1966
NATIONAL ASSOCIATION OF MALAYSIAN LIFE INSURANCE AGENT (NAMLIA) 1976
The Insurance Training Centre or Pusat Latihan Industry (PLIM) 1977
LIFE INSURANCE MARKET
SELLERS
a) LIFE INSURANCE b) GENERAL BUSINESS
INSURANCEE INTERMEDIARIES
Agents and brokers
BUYERS
INDIVIDUALS
PARENTS
BUSINESS PERSON
MAIN SECTION OF THE LIFE ASSURANCE MARKET
a) Proprietary companies.
b) Mutual companies.
c) Companies/ Societies transacting Home Services Business.
d) Insurance Intermediaries for sales
e) Organization of the insurance companies.
REGULATION AND SUPERVISION
a) INSURANCE ACT 1996
b) MALAYSIAN INCOME TAX ACT 1967
c) CIVIL LAW ACT 1967
d) BANKCRUPTY ACT 1967
e) UNCLAIMED MONEY ACT 1965