Question

Memo

To:           INS 210 Students

From:      Ken Goldstein

Date:       2/12/18

Re:          Insurance Company Operations (In-Class Assignment)

You have assumed a new product management role for a specialty insurance company. Your assignment is to assess the insurance company operation requirements to profitably lead a media and entertainment division as follows:

1. Rate Making - What would you want to know about the business to determine proper rate making?

2. Underwriting - How might you underwrite different types of media and entertainment customers? What types of questions would be important?

3. Production - How might you sell and market your media and entertainment coverage capabilities?

4. Claims Settlement - What type of experience might you be looking for in a claims examiner? How might the claims department be an advantage to your sales and marketing value proposition?

5. Reinsurance - Will you utilize reinsurance to grow the business? Why/why not?

Answer 1

1. Rate Making :-

When the management decides on the price factor many other factors influence the rate making decision. There are many questions to be looked into. What is the product that the company is going to produce, which sector of the society is the target, where will be the production happening, what all products will be used in the production of the goods, what is the level of taxation, how much is the involvement of government etc. All these questions are to be looked into while deciding the rates.

2. Underwriting :-

Underwriting is the major part and activity of any insurance company. Media and entertainment customers needs to be underwritten, so many questions need to be tackled. The experience level of the media professional, the risk factors involved in their profession, what is their experience level, how exposed they are in their relative field etc needs to be looked into. While underwriting these cases it is extremely importanct what is the level of their exposure which means if they are into total high profile journalism or tackling criminal cases then their cases has to be taken in a different way and underwritten in a more serious way.

3. Production :-

The marketing of the insurance products is a very important subject as the entire business depends on it. As the area is looking into the media and entertainment division the risks and coverage becomes even more inevitable. The selling and marketing strategies needs to be handled keeping in mind the exposure and the level of media and entertainment coverage.

4.Claims Settlement :-

A Claims Examiner needs to be a well experienced person. As this is a very rare field of media and entertainment the claims settlement examiner should be well experiened in that field. The reasons for the claims happening have to be studied well before the settlement. Claim settlement processes should be made easier for the people who have made the claims. That can be highlighted as an advantage. The claims made should be settled at the earliest without any tedious processes and delay that should be the highlight.

5. Reinsurance :-

Yes, I would be using the Reinsurance to grow the business. When reinsurance is done that means the company will get money and funds from the reinsurer. That will enable the company to get more people to be insured and the claims settlement can also be done in a good way.