Insurance WAEC

Insurance Market And Operators

Resumen

Buying insurance can feel like dealing with one faceless company, but behind every motor cover note or fire policy stands a whole marketplace of specialists. Some sell risk, some carry it, some carry the carriers, and a quiet crowd of experts prices, inspects and settles it. Knowing who is who is the difference between a candidate who guesses and one who understands how a Nigerian risk actually gets placed.

In this lesson you will map the insurance market from the buyer at the bottom to the reinsurer at the top, learn the roles of insurers, reinsurers, brokers and agents, and meet the supporting operators such as loss adjusters, actuaries and surveyors. Above all you will settle the one distinction examiners test almost every year: a broker acts for the insured, while an agent acts for the insurer.

Objetivos

  1. Describe the structure of the insurance market and identify its operators
  2. Distinguish the sellers of insurance from the buyers
  3. Explain the roles of insurers, re-insurers, brokers and agents
  4. Describe the supporting services in the market, including loss adjusters, actuaries and surveyors
  5. Explain how the parts of the market work together to place a risk

Mapa mental

Este tema esta esquematizado para ver como se conectan las ideas.

Tarjetas

Practica rapida de memoria sobre lo que se evalua en este tema.

Nota de la lección

A hotel owner in Uyo wants to insure her new building. She telephones a man who once sold her a motor policy, signs whatever he brings, and thinks she has dealt with her insurer. She has not. She has dealt with an intermediary, and whether that intermediary was working for her or for the insurance company will decide who is to blame if the cover turns out to be wrong. The insurance market is a chain of distinct operators, each with a defined job. Learn the chain and you can answer half of what WAEC asks on this topic before you read the rest of the question.

Evaluación de la lección

Felicitaciones por completar la lección del Insurance Market And Operators. Ahora que has explorado el conceptos e ideas clave, es hora de poner a prueba tus conocimientos. Esta sección ofrece una variedad de prácticas Preguntas diseñadas para reforzar su comprensión y ayudarle a evaluar su comprensión del material.

Te encontrarás con una variedad de tipos de preguntas, incluyendo preguntas de opción múltiple, preguntas de respuesta corta y preguntas de ensayo. Cada pregunta está cuidadosamente diseñada para evaluar diferentes aspectos de tu conocimiento y habilidades de pensamiento crítico.

Utiliza esta sección de evaluación como una oportunidad para reforzar tu comprensión del tema e identificar cualquier área en la que puedas necesitar un estudio adicional. No te desanimes por los desafíos que encuentres; en su lugar, míralos como oportunidades para el crecimiento y la mejora.

  1. In the insurance market, an insurance broker acts as the agent of the: A. Insurer B. Insured C. Reinsurer D. Regulator Answer: B
  2. Which of the following best describes a reinsurer? A. A broker who deals only in large risks B. A company that insures members of the public directly C. A company that accepts risk ceded to it by an insurer D. A government body that regulates insurers Answer: C
  3. A large factory fire claim is to be investigated on behalf of the insurance company. The operator appointed is a: A. Loss assessor B. Loss adjuster C. Surveyor D. Actuary Answer: B
  4. An insurer can retain 40,000,000 naira on a risk and reinsures the balance of a 100,000,000 naira cover. If the reinsurer bears the same proportion of any loss as of the risk, its share of a 50,000,000 naira loss is: A. 20,000,000 naira B. 30,000,000 naira C. 40,000,000 naira D. 50,000,000 naira Answer: B
  5. Which supporting operator uses statistics and probability to calculate premiums and reserves? A. Surveyor B. Loss adjuster C. Actuary D. Broker Answer: C

Libros Recomendados

Principles of Risk Management and Insurance
Principles of Risk Management and Insurance
Subtítulo: Thirteenth edition
Editorial: Pearson
Año: 2016
ISBN: 978-0-13-408257-8
Descripción: The standard introduction to risk and insurance, covering risk management, insurer operations and the main lines of life, health, property and liability cover.
Fundamentals of Risk and Insurance
Fundamentals of Risk and Insurance
Subtítulo: Tenth edition
Editorial: Wiley
Año: 2008
ISBN: 978-0-470-08753-4
Descripción: A clear account of the nature of risk and the economics of insurance, written for beginning students across life, health, property and liability insurance.
Fundamentals of Insurance
Fundamentals of Insurance
Subtítulo: Second edition
Editorial: Himalaya Publishing House
Año: 2017
ISBN: 978-93-5097-079-9
Descripción: An accessible treatment of insurance in four parts: the basics of risk, insurance management, life insurance and non-life insurance.

Preguntas de repaso

¿Te preguntas cómo son las preguntas anteriores sobre este tema? Aquí tienes una serie de preguntas sobre Insurance Market And Operators de años anteriores.

WAEC SSCE - Insurance - 2015

Pregunta 1 Informe

Explain the following terms as used in insurance.

(a) re-insurance

(b) Loss adjusters

(c) underwriters

(d) brokers

(e) assessor

 

Detalles de la respuesta

Meaning of the terms as used in insurance:

  1. Re-insurance: This is an arrangement whereby an insurance company transfers part of the risk it has accepted to another insurance company. It helps to spread risks and protects the insurer from very large losses.
  2. Loss adjusters: These are claims specialists appointed by insurance companies to investigate losses, determine the cause and extent of damage, establish whether the insurer is liable and recommend the amount payable as compensation.
  3. Underwriters: These are individuals or companies that assess risks proposed for insurance. They decide whether to accept or reject the risk and, where accepted, determine the premium, terms and conditions of the policy.
  4. Brokers: These are independent insurance intermediaries who act mainly on behalf of the insured. They advise clients on suitable insurance policies, obtain cover from insurance companies and assist clients in placing and negotiating claims.
  5. Assessor: This is a person who examines insured property or damage to it in order to estimate its value or the extent of loss. The assessor helps in determining the amount of compensation or claim due to the insured.
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