Insurance companies
Tuesday, May 6, 2008 | | |Insurance companies May be classified into two groups:
* Companies life insurance, selling life insurance, annuities and pensions.
* Non-life, General, or property / casualty insurance companies, who sell other types of insurance.
General insurance companies can be divided into under these categories.
* Standard Lines
* Surplus Lines
In most countries, life and non-life insurers are subject to different regulatory regimes and different tax and accounting rules. The main reason for the distinction between two types of society is that life, annuities, pension and business is very long term in nature - for life insurance or a pension can cover risks on many decades. In contrast, non-life insurance typically covers a shorter period, as a year.
In the USA, standard line insurance companies are your "main stream" insurers. These are the companies that typically ensure your car, home or business. They serve as a model or "cookie-cutter" policies without changing a person to another. They generally lower than premiums surplus lines and they can sell directly to individuals. They are governed by state laws which may limit the amount they can charge for insurance policies.
Surplus line insurance companies (aka surplus and the surplus) insure risks generally not covered by the standard lines market. They are largely covered by the whole set of non-admitted insurers. Non-admitted insurers are not allowed in states where the risks are located. These companies have greater flexibility and can react more quickly than the standard insurance companies because they are not required to file rates and forms as well as "admitted" carriers. However, they continue to have regulatory requirements imposed on them. Laws of the State in general insurance online with the surplus of agents and brokers not be available through licensed insurers standard.
Insurance companies are generally classified as either mutual or joint stock companies. It is more a traditional distinction as genuine mutual societies are becoming rare. Mutual companies are owned by police, while the shareholders (May or May not own policies) own shares of insurance companies. Other possible forms for an insurance company include Conversely, in which policy holders in return "in sharing risks, and Lloyds organizations.
Insurance companies are rated by various agencies such as AM Best. The notes include the finance company, which measures its ability to pay claims. He also rates the financial instruments issued by the insurance company, such as bonds, notes and securitisation products.
The reinsurance companies are insurance companies that sell policies to other insurance companies, allowing them to reduce risk and protect themselves from huge losses. The reinsurance market is dominated by a few very large companies, with huge reserves. A reinsurer May also be a direct risk insurance.
The captive insurance companies May be defined as limited purpose insurance companies established with the specific objective of financing risks from their parents or groups. This definition may sometimes be expanded to include some of the risks of the parent company of customers. In short, it is in a self-insurance vehicle. Captives May take the form of a "pure" entity (which is a subsidiary to 100 per cent self-insured parent company); a "mutual" in captivity (which insures risks collective members of a Industry) and an "association" captive (which ensures self-risk individual members of a professional, commercial or industrial association). Captives represent commercial, economic and tax advantages to their sponsors because of reductions in costs they help create and to ease risk management and insurance flexibility for cash flows they generate. Furthermore, they May cover the risks that is not available or offered in the traditional insurance market at reasonable prices.
The types of risk that can subscribe to captivity for their parents include damage to property, public and product liability, professional liability, employee benefits, employers liability, motor and medical aid spending. The captive of exposure to these risks May be limited by the use of reinsurance.
The captives are increasingly becoming an important element of risk management and risk financing strategy of their parent. This can be understood against the following:
* Increasingly heavy and bonuses in almost every line of coverage;
* Challenges to ensure certain types of risk fortuitous;
* Difference coverage standards in various parts of the world;
* Notices structures that reflect market trends rather than loss experience;
* Lack of credit for deductibles and / or loss of control efforts.
There are also companies known as' insurance consultants. As a mortgage broker, these companies are paid a fee by the customer to shop around for the best insurance policy between many companies. Similar to an insurance consultant, a "broker" also shopping around for the best insurance policy between many companies. However, with insurance brokers, the fee is usually paid in the form of commissions from the insurer that is selected rather than directly by the customer.
Neither insurance consultants or insurance brokers are insurance companies and no risks are transferred to these insurance operations. Third administrators are companies that perform underwriting and sometimes processing services claims for insurance companies. These companies often have special skills that insurance companies do not have.
Financial stability and strength of an insurance company must be a major consideration when buying an insurance contract. An insurance premium paid currently provides coverage for losses which may arise for many years in the future. For this reason, the viability of the insurer is very important. In recent years, a number of insurance companies have become insolvent, leaving their policyholders without coverage (or cover only a government-backed insurance or other arrangement with less attractive for losses payments). A number of independent rating agencies, as the best's, Fitch, Standard & Poor's and Moody's Investors Service, provide information and rate the financial viability of insurance companies.
* Companies life insurance, selling life insurance, annuities and pensions.
* Non-life, General, or property / casualty insurance companies, who sell other types of insurance.
General insurance companies can be divided into under these categories.
* Standard Lines
* Surplus Lines
In most countries, life and non-life insurers are subject to different regulatory regimes and different tax and accounting rules. The main reason for the distinction between two types of society is that life, annuities, pension and business is very long term in nature - for life insurance or a pension can cover risks on many decades. In contrast, non-life insurance typically covers a shorter period, as a year.
In the USA, standard line insurance companies are your "main stream" insurers. These are the companies that typically ensure your car, home or business. They serve as a model or "cookie-cutter" policies without changing a person to another. They generally lower than premiums surplus lines and they can sell directly to individuals. They are governed by state laws which may limit the amount they can charge for insurance policies.
Surplus line insurance companies (aka surplus and the surplus) insure risks generally not covered by the standard lines market. They are largely covered by the whole set of non-admitted insurers. Non-admitted insurers are not allowed in states where the risks are located. These companies have greater flexibility and can react more quickly than the standard insurance companies because they are not required to file rates and forms as well as "admitted" carriers. However, they continue to have regulatory requirements imposed on them. Laws of the State in general insurance online with the surplus of agents and brokers not be available through licensed insurers standard.
Insurance companies are generally classified as either mutual or joint stock companies. It is more a traditional distinction as genuine mutual societies are becoming rare. Mutual companies are owned by police, while the shareholders (May or May not own policies) own shares of insurance companies. Other possible forms for an insurance company include Conversely, in which policy holders in return "in sharing risks, and Lloyds organizations.
Insurance companies are rated by various agencies such as AM Best. The notes include the finance company, which measures its ability to pay claims. He also rates the financial instruments issued by the insurance company, such as bonds, notes and securitisation products.
The reinsurance companies are insurance companies that sell policies to other insurance companies, allowing them to reduce risk and protect themselves from huge losses. The reinsurance market is dominated by a few very large companies, with huge reserves. A reinsurer May also be a direct risk insurance.
The captive insurance companies May be defined as limited purpose insurance companies established with the specific objective of financing risks from their parents or groups. This definition may sometimes be expanded to include some of the risks of the parent company of customers. In short, it is in a self-insurance vehicle. Captives May take the form of a "pure" entity (which is a subsidiary to 100 per cent self-insured parent company); a "mutual" in captivity (which insures risks collective members of a Industry) and an "association" captive (which ensures self-risk individual members of a professional, commercial or industrial association). Captives represent commercial, economic and tax advantages to their sponsors because of reductions in costs they help create and to ease risk management and insurance flexibility for cash flows they generate. Furthermore, they May cover the risks that is not available or offered in the traditional insurance market at reasonable prices.
The types of risk that can subscribe to captivity for their parents include damage to property, public and product liability, professional liability, employee benefits, employers liability, motor and medical aid spending. The captive of exposure to these risks May be limited by the use of reinsurance.
The captives are increasingly becoming an important element of risk management and risk financing strategy of their parent. This can be understood against the following:
* Increasingly heavy and bonuses in almost every line of coverage;
* Challenges to ensure certain types of risk fortuitous;
* Difference coverage standards in various parts of the world;
* Notices structures that reflect market trends rather than loss experience;
* Lack of credit for deductibles and / or loss of control efforts.
There are also companies known as' insurance consultants. As a mortgage broker, these companies are paid a fee by the customer to shop around for the best insurance policy between many companies. Similar to an insurance consultant, a "broker" also shopping around for the best insurance policy between many companies. However, with insurance brokers, the fee is usually paid in the form of commissions from the insurer that is selected rather than directly by the customer.
Neither insurance consultants or insurance brokers are insurance companies and no risks are transferred to these insurance operations. Third administrators are companies that perform underwriting and sometimes processing services claims for insurance companies. These companies often have special skills that insurance companies do not have.
Thanks for posting the classification of insurance companies. With the help of this article one can easily decide about the company from which one should buy a plan. I highly recommend this article.
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