StudentShare
Search

# Insurance Underwriting Practice - Assignment Example

Summary
This is because in petrochemical installation any change in underwriting acceptance policy over any time must be considered in providing valuable starting point. In terms of their frequency and severity patterns it may exhibit similar characteristics of the underlying risks…

## Extract of sample "Insurance Underwriting Practice"

Download file to see previous pages This spread will be negative showing that the market considers its best on clients to lower the risk. Lending rates differ limiting the comparison. Claims on central side of annual growth will result to percentage of broad money. In the analysis, petrochemical will be managed by collection of underground samples hence high probability of oil in present. In comparison to private house, no investment of millions of money aimed while in petrochemical, there is cost estimation in terms of economic value. In this case, domestic production will be always higher in terms growth production all through out the year. the relation between price petrochemical and private house installation, generally, petro-chemical will have to move up hence having higher demand in pricing. Percentage tax on petro chemical in one year will be compared to risk premiums priced per year.
Data required is counting the number of times each claim value has occurred. A reason for this is because a single measure of average claim value would be much more informative and efficient than listing each individual claim. Secondly, data required may be calculated using frequent distribution which could be simply calculated by counting the total number of time each claim value has occurred (Grey 120). Thirdly, frequent distribution is very simple in summarizing all types of numerical data including premium values.
Independent variable is always measured on the horizontal axis whereas dependent variable is measured on the vertical axis. Relationship between existing variables shows that there is an input to the independent variables where else varies with dependent variables which shows the output (Grey 134).
It is a straight line drawn through the center of a group of data points plotted on a scatter plot. This shows the results of gathering data on two variables. Line of best fit shows whether the two variables appear to be correlated (Grey 134).
Cite this document
• APA
• MLA
• CHICAGO
(“Insurance Underwriting Practice Assignment Example | Topics and Well Written Essays - 1000 words”, n.d.)
Insurance Underwriting Practice Assignment Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/miscellaneous/1616946-insurance-underwriting-practice
(Insurance Underwriting Practice Assignment Example | Topics and Well Written Essays - 1000 Words)
Insurance Underwriting Practice Assignment Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/miscellaneous/1616946-insurance-underwriting-practice.
“Insurance Underwriting Practice Assignment Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/miscellaneous/1616946-insurance-underwriting-practice.
Click to create a comment or rate a document

## CHECK THESE SAMPLES OF Insurance Underwriting Practice

### The Mechanism of Insurance Companies for Insurance of Business

...? INSURANCE Choose a particular form of insurance and analyze in depth the mechanism that insurance companies use to underwrite and price that of business. Your name …………………. Course Name and Number …………….. Date of submission …………. Word-counts: 3061 Table of Contents Table of Contents 2 Introduction 3 Insurance and Risk Management 3 Marine Insurance and the Mechanism of Underwriting and Pricing of it 5 Marine Insurance 5 Major Classifications of Marine Insurance 7 Underwriting and Pricing Mechanism of Marine Insurance 7 Underwriting: The...
12 Pages(3000 words)Literature review

### Insurance

.... Because of the rising number of learners involved in practicing operations such as surgery, there tends to be various health risks involved in the learning, which implies that medical schools have to pay remarkable amounts to cater for health insurance in the school. The schools are facing a challenge in paying the insurance costs since they increase at a remarkably high rate. This has made some schools decline to offer medical training emanating from the vast insurance cots. Practicing physicians and training hospitals are other fields facing remarkably high insurance costs. Because of the high risk involved in training hospitals and...
6 Pages(1500 words)Essay

### Insurance

...? Insurance Module This paper discusses how different companies provide care along with the types of plans and expenses usually incurred. Furthermore, it gives a personal view of which plan is most suitable. Keywords: Care, plans Aetna Insurance Aetna insurance provides health insurances of different varieties which includes medical, dental, pharmacy, behavioural, group and disability plans (Aetna.com, 2013). These plan are customized according to the consumer needs and requirements and in most cases are pre-defined. Aetna insurance plans are usually designed considering health care management of its customers. Customers of Aetna Foundation comprise of...
4 Pages(1000 words)Assignment

### Insurance

...to conform to a vocational rationale demonstrating the market benefits of ethical behavior rather than encouraging students to examine fundamentally the assumptions and effects of business practice." (Bruce Macfarlane, 1995, p. 32-36) It indicates that a business always does not follow the practices of ethics in practicality; however, it is different for insurance companies because they are firms primarily based on the essence of ethics. Because it's the promise a company makes to its customer that they will be there in time of need. Insurance companies are a vital asset for the financial market. They are designed in a way that they don't go out of the...
5 Pages(1250 words)Essay

### Insurance Theory and Practice

.... But if there are a huge number of claims at the same time and the loss is massive and widespread, this may not be possible. It is in this context that reinsurance plays an important part in determining the success of the insurance business. 3. The Principles of Reinsurance 1. Utmost Good Faith: Reinsurers maintain utmost faith in underwriters of their company. These underwriters in turn maintain utmost good faith in the underwriters of the primary insurance company. 2. Indemnity: The principles of indemnity of the insured risk apply automatically on reinsurance. A reinsurer automatically follows the legal and technical future of the...
14 Pages(3500 words)Essay

### Insurance

...embarrassed boundary disagreement is evaded. The objective of the Law Commissions is to identify the customer similarly as the FSA describe a ‘retail customer,’ in the sense a person acting for the reasons those are exterior to his trade, business or profession. Conversely, no effort has been prepared to describe the term businesses in the Joint Consultation Paper 2007. Law Commissions are proposing that the business insurance proposals must be relevant evenly to marine, aviation and transport insurance and as well to reinsurance. Law Commissions that the projected regime for business insurance offers flexible test that can be valid across the board. It is not obvious at present how the...
8 Pages(2000 words)Essay

### Insurance

...Running head: Insurance Insurance Insert Insert Grade Insert 28 October Insurance has been in existence for a long period; however, today, it has become more prevalent, as the insurable items keep on expanding. This paper discusses critically the concept of insurance, including its benefits and various types of insurance that exist. It emphasizes on the importance of insurance not only as a cushion in times of uncertainties, but also as a form of investment. Insurance Introduction Insurance is a practice that involves a company guaranteeing compensation for a specific loss such as, illness, damage, or even death; in return, the client is supposed to make certain payments. Economics defines insurance as a form of risk management... in the...
5 Pages(1250 words)Term Paper

### Income Protection Insurance Assessment

...the underwriter, would you approve Mr. Farid’s application for income protection insurance? Explain I would not approve Mr.Farid’s claim for insurance for income protection. Mr. Farid had a heart valve disorder and this had the potential to present problems in future. It is an element of risk that I could not afford to look as an underwriter. By accepting his application claim, it means Mr.Farid had the motive of using this policy to claim for healthcare expenses. In other words, there was an element of moral hazard. Should Prudent Insurance Inc. pay the claim or deny it? Explain Prudent Insurance should deny the claim. The reason Mr....
2 Pages(500 words)Essay

### Insurance

...disadvantages. Part-A: Advantages of Telematics Insurance: One of the main advantages of telematics insurance is that it can constantly remind the driver of how fast he or she is driving the vehicle. Thus, when a person drives the vehicle beyond the safe speed limit, it works as an automatic check on dangerous habits. Thus, the younger generations who tend to embark on dangerous driving habits will b encouraged to adopt safe driving practices through this system of insurance. Since the insurance company collects the premium based on the driving behaviour of student drivers, telematics will inculcate in them the habit of safe driving. It also offers a no...
6 Pages(1500 words)Essay

### Underwriting: Equity and dept

...Underwriting: Equity and dept Contents Underwriting risks for investment banks in IPO 3 Auction process for UK government securities 3 References 5 Underwriting risks for investment banks in IPO The investment banks play the role of underwriters during the launch of IPOs by several companies that are looking to raise money from the market. In order to raise money from the market, the companies issue shares through the process of initial public offering. There are various factors that are involved for successful launch of the IPOs. These include the availability of the public investors, the promotion of the stocks offered in the market and the demand for these stocks that...
2 Pages(500 words)Assignment