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Other risk controls (Four risk management tools (Diversification (Lines of…

- - - - 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
      - requiring continuing 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
  - - - the company should hold good quality data on all risks insured and on the risk factors identified during underwriting, to ensure that adequate provisions are established and to reduce operational risk.
    - - effective procedures enable adequate provisions to be established, regular premiums to be collects and finance providers to be reassured.
    - - This protects against aggregation of risks to an unacceptable level. Also, by monitoring new business volumes, it helps ensure the provider is not exceeding the resources available; new business mix to monitor the risk to profitability due to cross-subsidies.
    - - In particular monitoring will determining whether the options and guarantees are likely to bite
- - - - Interpreted by specialist underwriters employed by the company
    - - occupation
      - leisure pursuits
      - normal country of residence
    - - Purpose to assess whether the proposed sum assured is reasonable relative to the financial loss that the applicant would suffer if the insured event occurs. The aim is to reduce the risk of over over-insurance.
      - Information obtained may include:
        
        occupation and salary
        
        selected sum assured
        
        details of other insurance policies held
        
        whether the applicant has an insurable interest in the insured life.