Insurance companies can be grouped into three broad types, name them:
A COMPOSITE company
A LIFE company
A GENERAL INSURANCE company
Define a COMPOSITE company:
A company which transact both long-term (life) and general business.
Define a LIFE company
A life insurance or pensions company that can only transact long-term business.
Define a GENERAL INSURANCE company
A company who are only able to transact general business.
The UK insurance industry is the largest in ______ and fourth largest in the _________:
Europe and the world.
The insurance market, like any other, includes SELLERS, BUYERS and MIDDLEMEN. Define each:
SELLERS are insurance companies and Lloyd’s
BUYERS can be any person, company or organisation wanting to purchase insurance.
MIDDLEMEN are insurance brokers and intermediaries.
What is an Insurance broker?
- An individual or firm whose full time occupation is the selling of insurance.
- Have a high standard of expertise.
- Will place the interests of their client before all other considerations.
What is the advantage of an insurance broker to the client?
They receive INDEPENDENT ADVICE on a wide range of insurance matters usually without a direct cost.
What is the advantage of an insurance broker to the insurer?
- Negotiations are quicker and easier as they only need to discuss special requirements and intricate points with the broker.
- Saves time and money as the broker handle routine matters.
What is an intermediary?
- An agent appointed by a party to seek the best cover, best price and recommend an insurance company and/or product.
- May be authorised to purchase on behalf of a client.
- Do not have an obligation to seek best terms as they may only deal with one insurer.
