Free Essay

Risk Management & Insurance on Reliance Insurance Company

In: Business and Management

Submitted By bonnaa
Words 2938
Pages 12

In order to carry out the assignment, certain approaches and methodologies are required to be followed. The following approaches were followed in conducting this term paper.

1.1 Origin of the Report:

The report is a partial requirement of the course Risk Management & Insurance (FIN 410). That is why our honorable instructor assigned us to do a term paper on Reliance Insurance Company Limited. The report is conducted based on the financial statement and the website of the company. This report is a reflection of what we have learned in between the course.

1.2 Objective and the Scope of the Report:

The report was prepared as a part of our course work. The basic objectives of preparing this report are: * Analyze the financial statement of the insurance company and calculate different ratios. * Different policy the company offers. * Overall structure of the company.
1.3 Methodology of the Report:

The term paper was based on different numeric values collected from the financial statement of the company and plotting them in different equations, also some information regarding the company was collected from the company’s website
1.4 Sources of Data:

All the data and the information which was required to complete the term paper have been collected from the financial statements and the website of Reliance Insurance Company Ltd. That means, only secondary sources of data was used to complete the term paper, no primary source was used.

1.6 Limitations of the study:

Of course this term paper is not flawless and we had several limitations. The limitations of the study are given below.

* Time shortage was one of the major limitations. * Coordination among the group members was another problem. * Collecting information from the annual report was little bit difficult because we do not have that much practical experience.

Reliance Insurance Company Limited:
Following emergence of Bangladesh as an independent nation in 1971, insurance industry was nationalized along with banking and major industrial sectors of jute, textile, sugar and other heavy industries. Under the nationalized scheme, only two corporations in the name and style of Sadharan Bima Corporation (General Insurance Corporation) and Jiban Bima Corporation (Life Assurance Corporation) were set up by the Government for carrying on general and life insurance business respectively. Starting with gradual liberalization of investment in industry and commerce, insurance business was also allowed in the private sector From 1985. As a result, a number of companies were set up. RELIANCE INSURANCE LIMITED was the fourteenth in line to start general insurance business in the private sector.

The Company was incorporated on 20th March 1988 and was allowed to commence business by virtue of the Certificate of Commencement of Business issued by the Registrar of Joint Stock Companies on 22nd March 1988. The Company obtained Certificate of Registration issued by the Controller of Insurance on 7th April 1988.The company was subsequently listed in the stock Exchanges of Bangladesh in 1995.

2.1 Company’s Vision
The vision of the company is to become the premier insurance organization and the insurer of first choice in Bangladesh with a sound reputation for dependability, professionalism and the highest standard of customer services.

2.2 Company’s Mission Grow significantly and achieve significant non-life insurance market share. | Continue delivering attractive returns to our shareholders. | Become a caring organization and employer of choice. | Invest in top quality human resources and develop full potentials of employers by providing continued training and insurance education. | Bring innovation in insurance products and selling techniques. |
2.3 Company’s Strength
Constant pursuit of suitable strategies has made the company the leading insurer of Bangladesh for over two decades.
2.4 Company’s Belief
We believe that client must stand at the center of our all activities. We have the ability to optimally fulfill the clients needs based on risk management with minimum cost and personalized services

2.5 Company’s Core Values


Product | Fire Insurances | Fire Insurance (including Allied Perils) | Industrial All Risks (IAR) | Property Damage All Risks (PDAR) | Marine Cargo Insurances | Marine Cargo Insurance transit by Steamer or Powered Vessel | Marine Cargo Insurance transit by Rail/Lorry/Truck | Marine Cargo Insurance transit by Inland Rail or Road | Marine Cargo Insurance transit by Inland Cargoes (water borne) | Marine Cargo Insurance transit by Air Cargo | Marine Hull Insurance | Total Loss Only (TLO) | Institute and Inland Time Clauses Hull (ITC) | Engineering Insurances | Machinery Insurance (Machinery Breakdown) | Deterioration of Stock (DOS) | Boiler and Pressure Vessel (BPV) | Electronic Equipment Insurance (EEI) | Erection All Risks (EAR) | Contractor’s All Risks (CAR) | Work Plant (WP) | Oil & Gas Well Drilling Equipment Package (OGD) | Contractors Plan & Machinery (CPM) | Hotel Owners All Risks (HOAR) | Motor Insurances | Motor Insurances for Motor Cycle/ Scooter | Motor Insurances for Private Vehicle | Motor Insurances for Commercial Vehicle | Miscellaneous | Burglary | Cash in Safe | Cash in Transit | Cash on Counter | Cash in Premises | Fidelity Guarantee | All Risks | Personal Accident | Personal Accident (air Travel) | Product Liability (PRL) | Public Liability (PL) | Workmen’s Compensation | Employers Liability | Marine Terminal Operators Liability (MTOL) | Commercial General Liability (CGL) | Comprehensive General Liability | Hole in One Insurance/Event Cover | Business Interruption | Overseas Medical and Holiday Insurance including Study and Employment | Health Plan Scheme ( Hospitalization) | Critical Illness |


4.1 Liquidity Ratio

Current Ratio (2007): Current Assets Current Liabilities = 1,576,449,716 1,058,590,000 = 1.49
Current Ratio (2008): Current Assets Current Liabilities =1,374,433,224 1,057,290,000 = 1.29
Current Ratio (2009): Current Assets Current Liabilities = 787,583,346 899,020,000 = 0.87
Current Ratio (2010): Current Assets Current Liabilities =626,111,239 758,410,000

= 0.83
Current Ratio (2011): Current Assets Current Liabilities =488,528,852 606,350,000 = 0.8065

This ratio shows company’s ability to pay off its current liability out of current asset. From the above calculation we can summarize that, in year 2011 the company is now less capable of payout its debt from its current assets than of 2010,2009,2008 & 2007. But it also indicates that the company is now more efficiently using its resources than of keeping it idle as in 2010,2009,2008 & 2007.

4.2 Underwriting Ratios

Loss Ratio:
Loss Ratio (2007): Loss Adjustments Premiums Earned = 85,600,000 353,660,000 = 24.20%
Loss Ratio (2008): Loss Adjustments Premiums Earned = 103,680,000 453,200,000 = 22.88%
Loss Ratio (2009): Loss Adjustments Premiums Earned = 105,090,000 430,250,000 = 24.43%
Loss Ratio (2010): Loss Adjustments Premiums Earned = 137,680,000 618,070,000

= 22.28
Loss Ratio (2011): Loss Adjustments Premiums Earned = 152,040,000 731,400,000 = 20.79%

The loss ratio shows what percentage of payouts is being settled with recipients. That means out of the collected premium, what is the percentage of claim paid out by company. The lower the ration is better for the company. From the above scenario we can summarize that, the company have successfully implemented new or managed to overcome lacking of its risk management policies to guard against future possible insurance payouts.

Expense Ratio:
Expense Ratio (2007): Underwriting Expenses Net Premiums Earned = 18,295,857 353,660,000

= 5.17%

Expense Ratio (2008): Underwriting Expenses Net Premiums Earned
= 19,552,407 453,200,000

= 4.31%

Expense Ratio (2009): Underwriting Expenses Net Premiums Earned
= 25,416,229 430,250,000

= 5.90%

Expense Ratio (2010): Underwriting Expenses Net Premiums Earned
= 27,447,895 618,070,000

= 4.44%

Expense Ratio (2011): Underwriting Expenses Net Premiums Earned = 49,199,860 731,400,000

= 6.73%

Underwriting expenses are the costs of obtaining new policies from insurance carriers. There lower the expenses ratio the better because it means more profits to the insurance company. In 2008 & 2010 company was in better condition. In 2011 this ratio was higher than its previous year.

Combined Loss/Expense Ratio:
Combined Loss/Expense Ratio (2007): Loss Ratio + Expense Ratio
= 24.20%+5.17% = 29.37%
Combined Loss/Expense Ratio (2008): Loss Ratio + Expense Ratio
= 22.88%+4.31%

= 27.19%
Combined Loss/Expense Ratio (2009): Loss Ratio + Expense Ratio
= 24.43%+5.90%

= 30.33%
Combined Loss/Expense Ratio (2010): Loss Ratio + Expense Ratio
= 22.28%+4.44%

= 26.72%
Combined Loss/Expense Ratio (2011): Loss Ratio + Expense Ratio
= 20.79%+6.73%

= 27.57%

This figure just measures claims losses and operating expenses against premium earned. The lower the figure the better. The combined ratio is the total of estimated claims expenses for a period plus overhead expressed as a percentage of earned premium.

Ratio of Net Written Premiums to Policyholder Surplus:

Ratio of Net Written Premiums to Policyholder Surplus (2007): Premium Surplus = 353,660,000 (1,205,615,527-35,598,723) = 30.23%
Ratio of Net Written Premiums to Policyholder Surplus (2008): Premium Surplus = 453,200,000 (1,467,927,934-482,356,463) =45.98%
Ratio of Net Written Premiums to Policyholder Surplus (2009): Premium Surplus = 430,250,000 (1,880,297,822-617,984,271) = 34.08%

Ratio of Net Written Premiums to Policyholder Surplus (2010): Premium Surplus = 618,070,000 (4,605,927,373-1,092,859,573)

= 17.59% Ratio of Net Written Premiums to Policyholder Surplus (2011): Premium Surplus = 73,140,000(453,084,514-1,103,320,130) = 15.92%

This ratio measures the level of capital surplus necessary to write premiums. An insurance company must have an asset heavy balance sheet to pay out claims. Industry statuary surplus is the amount by which assets exceed liabilities.
In 2007 the company had 30.23%, in 2008 it was 45.98%,in 2009 it was 34.08%, in 2010 it was 34.69% premium among its surplus and in 2011 the percentage was 15.2%

4.3 Profitability Ratios

Return on Revenues:

Return on Revenues (2007): Net Operating Income Total Revenues = 100,680,000 353,660,000 = 28.47%
Return on Revenues (2008): Net Operating Income Total Revenues = 137,910,000 453,200,000 = 30.43%
Return on Revenues (2009): Net Operating Income Total Revenues = 146,300,000 430,250,000 = 34%
Return on Revenues (2010): Net Operating Income Total Revenues = 287,230,000 618,070,000 = 46.47%
Return on Revenues (2011): Net Operating Income Total Revenues = 304,970,000 731,400,000 = 41.70%

This ratio indicates, what is the percentage of net operating income out of the total revenue. The higher the ratio better for the organization. From the above situation we can summarize that, from 2007-2010 the company able to manage expenses out of the total revenue that is the reason why company’s net operating income increases in comparison to the total revenue but in 2011 it drops down than 2010.

Return on Assets:
Return on Assets (2007): Net Operating Income Mean Average Assets = 100,680,000 1,205,615,527 = 8.35%
Return on Assets (2008): Net Operating Income Mean Average Assets = 137,910,000 1,467,927,934 = 9.39%
Return on Assets (2009): Net Operating Income Mean Average Assets = 146,300,000 1,880,297,822 = 7.78%
Return on Assets (2010): Net Operating Income Mean Average Assets = 287,230,000 4,605,927,373 = 6.24%
Return on Assets (2011): Net Operating Income Mean Average Assets = 304,970,0004,530,842,514 = 6.73%

This ratio calculates the return on assets by dividing net operating income by mean average assets. This figure shows the profitability on existing investment securities and premiums. The higher the return on assets the better the company is enhancing its returns on existing liquid assets.
From the above situation, we can summarize that, from 2007 to 2010, the company’s earning of income got lower in percentage. Meaning that, now company is earning lesser using its per unit of existing asset compared to the previous year. In 2011 it gets slightly higher than 2010, but it was better than the other years.

Return on Equity:
Return on Equity (2007): Net Operating Income (less preferred stock dividends) Average Common Equity = 100,680,000 580,260,000 = 17.35%
Return on Equity (2008): Net Operating Income (less preferred stock dividends) Average Common Equity = 137,910,000 688,200,000 = 20%
Return on Equity (2009): Net Operating Income (less preferred stock dividends) Average Common Equity = 146,300,000 952,440,000 = 15.36%
Return on Equity (2010): Net Operating Income (less preferred stock dividends) Average Common Equity = 287,230,000 3,513,070,000 = 8.18%
Return on Equity (2011): Net Operating Income (less preferred stock dividends) Average Common Equity = 3,049,700,00342,745,200 = 8.90%

This ratio shows the net profits that are returned to shareholders. The higher the return on equity the more profitable the company has become and the possibility of enhanced dividends to shareholders.
From the above scenario we can conclude that, from 2007 to 2011 the company has earned less return on equity, so it is not bearing any positive information among the shareholders. Resulting in tension in share market due to selling tendency of company’s share and fall in share price.

Investment Yield:

Investment Yield (2007): Average investment Assets Net Investment Income = 169,522,028 42,420,000 = 4
Investment Yield (2008): Average investment Assets Net Investment Income = 198,536,151 61,140,000 = 3.247
Investment Yield (2009): Average investment Assets Net Investment Income = 190,526,148 114,940,000 = 1.658
Investment Yield (2010): Average investment Assets Net Investment Income = 2,673,343,053153,680,000 = 17.40
Investment Yield (2011): Average investment Assets Net Investment Income = 1,539,704,997159,910,000 = 9.62

This is the return received on an insurance company’s assets. The investment yield is obtained by dividing the average investment assets into the net investment income before income taxes.
Meaning that, what is the percentage of return earned by the insurance company out of its net investment.
From the above situation we can conclude that, in 2010 this ratio was highest Which is beneficial for the company, as the company was earning more return out of its net investment.

4.4 Leverage Ratio

Debt Ratio (2007): Total Liabilities Total Assets = 355,987,2331,205,615,527 = 29.53%
Debt Ratio (2008): Total Liabilities Total Assets = 482,356,463 1,467,927,934 = 32.86%
Debt Ratio (2009): Total Liabilities Total Assets = 617,984,271 1,880,297,822 = 32.87%

Debt Ratio (2010): Total Liabilities Total Assets = 690,901,872 4,605,927,373 = 15.00%
Debt Ratio (2011): Total Liabilities Total Assets =608,243,491 4,530,842,514 = 13.42%

This ratio shows, what is the percentage the company is having of its total liability in comparison to its total assets. That means, the lower the ratio the less liable is the company against of its asset. From the above scenario, in 2011 the company is getting a lower portion of debt ratio, which is definitely wise for the company. And it will also can be a reason of shareholders satisfaction and increase in the share price in the stock market.

4.5 Market Ratio
Price Earnings Ratio (2007): Market Price per Share EPS =32.20 4.43 =7.27

Price Earnings Ratio (2008): Market Price per Share EPS
=88.73 6.00 =14.79
Price Earnings Ratio (2009): Market Price per Share EPS
=133.9 5.12 =26.15
Price Earnings Ratio (2010): Market Price per Share EPS
=173.80 7.15 =24.31
Price Earnings Ratio (2011): Market Price per Share EPS =102.10 5.37 =19.01
P/E ratio measures the willingness of the investors to purchase the share.
In 2007 investors were willing to spend Tk. 7.27 for each Taka of earning for the company share.
In 2008 investors were willing to spend Tk. 14.79 for each Taka of earning for the company share.
In 2009 investors were willing to spend Tk. 26.15 for each Taka of earning for the company share.
In 2010 investors were willing to spend Tk. 24.31 for each Taka of earning for the company share.
In 2011 investors were willing to spend Tk. 19.01 for each Taka of earning for the company share.

Market /Book Value of Equity:
Market /Book Value of Equity (2007): Market Price per Share Book Value per Share = 32.20 386.84 = 0.08
Market /Book Value of Equity (2008): Market Price per Share Book Value per Share = 88.73 382.62 = 0.23
Market /Book Value of Equity (2009): Market Price per Share Book Value per Share = 133.9407.03 = 0.33
Market /Book Value of Equity (2010): Market Price per Share Book Value per Share = 173.80 384.64 = 4.52
Market /Book Value of Equity (2011): Market Price per Share Book Value per Share = 102.10 83.46 = 1.22

It indicates in each Taka of market price of a share, how much is contributed by the equity holders. In 2007 it was Tk. 0.08, in 2008 it was Tk. 0.23, in 2009 it was Tk. 0.33, in 2010 it was Tk. 4.52 and in 2011 it was Tk. 1.22.

From the ratio analysis it is visible that Reliance Insurance Company is consequently a profitable company, but after 2010 profit has little bit decreased because of the downward trend in the economy. The company offers a diversified policy, for the corporate clients and the individuals. The company runs their business through several functional units.

1. Annual report of the company

Similar Documents

Premium Essay

Insurance Company Report

...Insurance Sector Analysis Project Details: Subject: Financial Management Topic: Insurance Sector analysis Teacher in charge: KB sir Made by: 1. Abhinav Aggrawal, BFIA 1A Roll number: 75101 2. Akhil Bedi, BFIA 1A Roll number: 75107 3. Jessica Singh BFIA 1A Roll number: 75124 Teacher Remarks: Contents Insurance Sector Analysis 1 Project Details: 2 Acknowledgement 4 An Overview of the project: 5 Objective: 5 A Brief History 8 Insurance Sector: Growth 9 Life insurance: 10 General Insurance 11 Ratio Analysis 13 Return on Equity 14 Combined Ratio 15 Debt Equity 17 Loss Ratio 18 Financial Statement Analysis 19 Profit 20 Share Capital 22 Reserves 24 Premium 26 Investments 28 References 30 Acknowledgement We would like to express our gratitude towards KB sir, who gave us the golden opportunity to peep into the financial world, and comprehend and adopt the techniques of analysis and interpretation. Alongside, he has also guided and directed the progress of this project as a member itself, assisting us at every dead lock. We are really thankful to him. Secondly, we would also like to thank the college authority for facilitating such an exposure and providing amenities that made this project possible. Lastly we would like to express appreciation towards each other for the cooperation and commitment shown by each member of the group, which helped shape this project within the limited time. Thank......

Words: 5451 - Pages: 22

Free Essay

Insurance Company

...ACCOUNT OF INSURANCE COMPANY Insurance in the Philippines is a booming business with a large number of players, but in fact it has old roots. During the Pre-Spanish Era, there was no insurance; every loss was borne by the person or the family who suffered the misfortune. The first insurance company, in its present concept, to operate here was Lloyd’s of London, which in March 1829 appointed Stracham, Murray & Co. to be its local agent to represent here, in which during this time is the Spanish Era. But in 1898, life insurance was introduced in the country; Sun Life Assurance of Canada first enter and began selling life insurance in the local insurance market of the country. The Philippines got its first purely domestic insurers in the beginning of the 20th century. The first domestic non-life insurance company was the Yek Tong Lin Fire & Marine Insurance Company (today Philippine First Insurance Company) established in 1906. Four years later, 1910, the first domestic life insurance company, the Insular Life Assurance Co., Ltd., was locally-owned and organized. And in 1936, Social insurance was established with the enactment of Commonwealth Act no. 186 which created the Government Service Insurance System (GSIS) which started operations in 1937. The Act covers gov’t employees. But when Union Insurance Society of Canton appointed Russel & Surgis as its agent in Manila in the year 1939, the business transacted the Philippines was then limited to non-life insurance.......

Words: 479 - Pages: 2

Premium Essay

Ra Insurance Company

...RA Insurance Company: Risk assessment and internal controls Maastricht University School of Business and Economics Maastricht, 20 September 2013 Abel, S. I6077467 Isenia, N. I6064905 Liu, B. I6063209 Study: MSc IB Controlling Course code: EBC4069 Group number: 3 Tutor name: R. Maessen Writing assignment: Case Study RA The case study “ RA (Rest Assured) Insurance Company concerns a company that was involved in a large life insurance scam. RA was facing several risks that had a dramatic impact on the company because of bad decisions, lack of business controls, and a corporate culture that was inefficient and ineffective. The main objective of this case memo is to identify and appropriately assess the risks that the RA insurance company was facing. Further, this case memo introduces internal control solutions to manage those risks. Finally, this case memo provides examples of other companies that have faced problems similar to RA’s “churning” of policies. Identifying and assessing risks There are several strategic, sales & marketing, corporate culture, and corporate governance risks that are causing problems at RA. Firstly, the risk that the maximum amount of possible life insurance is reached is certainly a risk that RA is unable to manage. Although the overall number of life insurance policies was declining, RA continued to put its focus on this product. This might have put additional pressure on the sales force, forcing salesmen perhaps to commit fraud. Although this......

Words: 2325 - Pages: 10

Premium Essay

Insurance & Risk Management

...Acknowledgement * History of EFU Insurance * Vision * Mission * Policies Offered By EFU Insurance * Detail About Policies * Coverage Under Policies * Risk Management * Claims * Payment of claims and Process * Duration of Policies * Marketing Plan ACKNOWLEDGEMENT All the Acclimations and Appreciation are for Almighty ALLAH, the Compassionate; the Benevolent. That knows the mysteries & secrets of universe. We would like to show the special gratitude to MISS Khudaija who provided with us knowledge Vision about the management. At the end, we would like to thank all who directly or indirectly help us in making the project. Introduction:- In 1932, Mr. Ghulam Mohammad, a far sighted man, established Eastern Federal Union Insurance Company (EFU) with financial assistance from the Aga Khan III and the Nawab of Bhopal. Mr. Abdur Rehman Siddiqui became the founder chairman. The company was originally registered at Kolkata and operated in India (undivided) and Burma. In 1947, on the birth of Pakistan, EFU found a new home in a new country. In Pakistan, EFU rapidly established itself as a progressive and innovative insurer. It gave the emerging insurance industry the leadership, the manpower and the drive needed to grow in a situation where at one time, three-fourths of insurance was held by foreign companies. By 1961, EFU had become the flag bearer of Pakistan's insurance industry on the......

Words: 4817 - Pages: 20

Premium Essay

Insurance Company

...Life Insurance Company New York Life Insurance Company (NYLIC) is ranked among the top mutual life insurers in the U.S, providing life insurance policies both locally and in overseas. It has always retained its core business, which is life insurance and annuities. Employee Benefits NYLIC uses group life insurance to fill the gaps between employees and employers, through simplified underwritings that guarantee coverage for new employees, and provide them with opportunity to supplement their savings (Miller, 2013). Dental benefit is also offered in a flexible and cost-effective way that ensure employees meet their objectives from a value and cost perspective. Long term disability is the third benefit that finanacially protect employees who can no longer work due to diabilities. There is also a health care spending account whereby amount deposited in it is used to cater for an employee’s health-care and dependent-care expenses. Structural Orgnization New York Life Insurance Company, formed under the New York State Laws, is organized into two main subsidiaries that operate in accordance with the defined requirements of this company by the law. They include: New York Life Insurance and Annuity Corporation, and New York Life Insurance Company of Arizona. Due to subsequently reversed course by the company’s Board of Directors, NYLIC strongly and publicly embrace their preferred mutual nature, through advertisements. Qatar Insurance Company Qatar Insurance Company was......

Words: 487 - Pages: 2

Free Essay

Insurance Company

...Executive Summary: Rocky Mountain Mutual built a new headquarters in a remote suburban area which included elegant offices and a Fitness Center. The management touted the Fitness Center as drawing factor for young employees into the company. Employees who used Fitness Center are found to be more productive and less absentees at work. Joseph Mirola, the Claims Manager for the company, is a fitness lover. He believes Fitness Center will benefit the firm. Zachary Evans, Vice President of Operations, is thinking to shutdown Fitness Center to reduce costs. Joseph Mirola has to send a memo to Zach pursuing him to change his mind about Fitness Center. Situational Analysis: 1) As the new headquarters of the Rocky Mountain Mutual was built in a remote suburban area, Fitness Center would be a major attraction for the people joining the organization. 2) The Fitness Center was aimed at luring young into the organization and closing it down may rise dissatisfaction among young employees. 3) Growing Corporate Information Systems Department needs space to accommodate it and this cannot be ignored. Problem Statement: 1) The core problem in front of us is saving Fitness center from closing down without increasing cost to the company (if possible reduce the costs) and at the same time providing space to accommodate growing Corporate Information Systems Department. Options: 1) Closing Fitness Center 2) Dividing the present Fitness Center such that the space......

Words: 1056 - Pages: 5

Premium Essay

Insurance Company

...of Insurance Companies in Bangladesh LIST OF NON-LIFE INSURANCE COMPANIES Agrani Insurance Company Ltd. Asia Insurance Ltd. Asia Pacific Gen Insurance Co. Ltd. Bangladesh Co-operatives Ins. Ltd. Bangladesh General Insurance Co. Ltd. Bangladesh National Insurance Co.Ltd. Central Insurance Company Ltd. City Gen. Insurance Company Ltd. Continental Insurance Ltd. Crystal Insurance Company Ltd. Desh Gen. Insurance Company Ltd. Eastern Insurance Company Ltd. Eastland Insurance Company Ltd. Express Insurance Ltd. Federal Insurance Company Ltd. Global Insurance Ltd. Green Delta Insurance Co. Ltd. Islami Commercial Insurance Co. Ltd. Islami Insurance Bangladesh Ltd. Janata Insurance Company Ltd. Karnaphuli Insurance Company Ltd. Meghna Insurance Company Ltd. Mercantile Insurance Company Ltd. Nitol Insurance Company Ltd. Northern Gen.Insurance Company Ltd. Peoples Insurance Company Ltd. Phonix Insurance Company Ltd. Pioneer Insurance Company Ltd. Pragati Insurance Ltd. Pramount Insurance Company Ltd. Prime Insurance Company Ltd. Provati Insurance Company Ltd. Purabi Gen Insurance Company Ltd. Reliance Insurance Ltd. Republic Insurance Company Ltd. Rupali Insurance Company Ltd. Sonar Bangla Insurance Company Ltd. South Asia Insurance Company Ltd. Standard Insurance Ltd. Takaful Islami Insurance Ltd. Dhaka Insurance Ltd. Union Insurance Company Ltd. United Insurance Company Ltd. Sena Kalyan Insurance Company Ltd. Sikder Insurance Company......

Words: 4486 - Pages: 18

Free Essay

Personnel Management and Office Administration in Insurance Companies

...PERSONNEL MANAGEMENT AND OFFICE ADMINISTRATION IN INSURANCE COMPANIES Subject : Banking and Insurance Submitted To Submitted By Mrs. Namita Kohli Nisha Goyal Lecturer in Commerce M.Com 2nd year Roll No. 2530 Session : 2010 – 11 Guru Nanak Khalsa College For Women, Model Town, Ludhiana PERSONNEL MANAGEMENT AND OFFICE ADMINISTRATION IN INSURANCE COMPANIES MEANING It is a universal truth that “People” are the greatest assets of any organisation therefore management of people or personnel management in any organisation is an important feature of any organisation. It perform the basic function of the management i.e. planning, organsizing, directing and controlling the procurement, development, compensation and maintenance of the people for the purpose of contributing to the organisation, individual and social goals. The basic functions/activities of a personnel management is the same for any type of organisation , whether it is manufacturing or insurance sector. The personnel management perform the following activities:- 1. Recruitment and Selection A. Formulation of organisational objectives and preparation of human plan. B. Resources Analysis : identifying the number, type of people, skills and other human resources required based on manpower planning. 2. Motivation Motivation is very important subject in the study of personnel management. It may look simple yet in practice it is very complex......

Words: 3616 - Pages: 15

Premium Essay

Insurance and Risk Management

...INSURANCE AND RISK 1.0 Definition of insurance. Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount of money to be charged for a certain amount of insurance coverage is called the premium. Categories of risk include:- 1. Financial risks which means that the risk must have financial measurement. 2. Pure risks which means that the risk must be real and not related to gambling 3. Particular risks which means that these risks are not widespread in their effect, for example such as earthquake risk for the region prone to it. 1.1 Basic Characteristics of insurance. The insurance has the following characteristics which are, generally, observed in case of life, marine, fire and general insurances. 1.Sharing of Risk:- Insurance is a device to share the financial losses which might befall on an individual or his family on the happening of a specified event. The event may be death of a bread-winner to the family in the case of life insurance, marine-perils in marine insurance, fire in fire insurance and other certain events in general insurance, e.g., theft in burglary insurance, accident in motor insurance, etc. The loss arising nom these events if......

Words: 1778 - Pages: 8

Premium Essay

Management Insurance

...down the warehouse when your company goes bankrupt to collect insurance money or buying insurance on someone with yourself as beneficiary and then killing them); and * morale hazards, like a careless attitude since "insurance will pay for it."   b. Define physical hazard, moral hazard, attitudinal. hazard, and legal hazard. (1) Physical hazard: physical environment which could increase or decrease the probability or severity of a loss. It can be managed through risk-improvement, insurance policy terms, and premium rates. (2) Moral hazard: attitude and ethical conduct of the insured. It cannot be managed but can be avoided by declining to insure the risk. Read more: 4. a. Explain the difference between pure risk and speculative risk 1. Pure Risk situations are those where there is a possibility of loss or no loss. There is no gain to the individual or the organization. WHERE AS Speculative Risks are those where there is a possibility of gain as well as loss. The element of gain is inherent or structured in such a situation. 2. Pure risks are generally insurable while the speculative ones are not. 3. The conceptual framework of the risk pooling can be applied to the pure risks, while in most of the cases of speculative risks where it is not possible. However, there may be some situation where the law of mathematical expectation might be useful. 4. Speculative risk carry some inherent......

Words: 1270 - Pages: 6

Premium Essay

Risk N Insurance

...International School of Business Management Risk and Insurance Management Assignment Submitted to: Parul Bhargava Associate professor Submitted by: Dipak kumar sah BBA, 4th sem Assignment Risk and insurance management 1. “Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.” Discuss & also describe the significance of insurance in Indian society. As per the statement “Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.” Insurance acts as a safety for the possible losses to be faced in near future. Insurance means safeguarding against a specific risk which is exposed to. Insurance is a form of risk management in which the insured transfers the cost of potential loss to another entity in exchange for monetary compensation known as premium. Insurance is a special type of contract between a insurance company and its clients in which the insurance company agrees that on the happening of certain events the insurance company will either make a certain payment to its client or meet the certain costs. As supporting the above statement, following are the significance of insurance in Indian society: 1. 2. 3. 4. 5. 6. 7. 8. Insurance provides......

Words: 2168 - Pages: 9

Premium Essay

Risk Management and Insurance

...CLASSES OF INSURANCE LIFE INSURANCE This is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insured individual’s or individual’s death. It is the risk pooling plan and economic device through which the risk of premature death is transferred from the individual to a group In return the policy owner or policy payer agrees to pay a stipulated amount called a premium at regular intervals or in lump sums (so-called “paid up” insurance). A life insurance contract is intended to meet the needs of survivors or beneficiaries, when the investor dies. From the life insurance contract, the beneficiaries receive a sum of money that far exceeds the value of the premiums the investor had paid. The beneficiaries, of course, receive this benefit if the person insured dies during the contract period. The contract of life insurance is different from other types of insurance in the following respects. The event insurer against is an eventual certainty i.e. nobody lives forever. It is not the possibility of death that is insured against; rather, it’s the untimely death. The risk is not whether the insured person is going to die but when. The risk increases as the individual ages or grows older because chances of death are greater in later years than in initial years. There is no possibility of partial loss in life as in the case of property and liability insurance. Therefore, if a loss occurs under life...

Words: 1556 - Pages: 7

Premium Essay

Activity Based Management Results in Insurance Company

...Across the insurance industry, management is under pressure to deliver the multiple objectives of Cost Reduction and Profitability. Generally there is a lack of information in the financial and management systems to properly inform and to target opportunities for improved costs. The complex business models, including issues around multi-channel and multi-product are not being supported by the traditional cost accounting. The speed with which the change is happening in today’s business area has taken on a particular force in the insurance industry due to increased competition, intervention of statutory bodies on pricing, and the advent of new technologies and distribution channels. For the pricing of a policy the actuarial information provides the basic premium to that the organizational overheads are added ad-hoc. This is done primarily due to the unavailability of the relevant information. With the use of a relevant Activity Based Management (ABM) model the same organization can get information on acquiring a customer, serving the requests, claims and closure of policy due to surrender or maturity payment etc. Let us see how an ABM model can provide sufficiently detail information of the overheads. The model calculates the cost of various transactions (aka processes) in the organization. These transactions are grouped across various dimensions as follows: Customer lifecycle event – Acquire, Serve, Retain and Close are the four events in the lifecycle of a customer with...

Words: 1232 - Pages: 5

Premium Essay

Insurance, Risk and Market Associations

...Insurance, Risk and Market Associations 2010 Contents Introduction 3 Insurance 3 General Introduction 3 The principles of Insurance: 4 Task 1 The Irish Insurance Federation (IIF) 4 About the Irish Insurance Industry (Market) 5 The Chartered Insurance Institute (CII) and Irish Insurance Federation (IIF) 6 The Dublin International Financial Services Centre (DIFSC) 7 The Irish Brokers Association (IBA) 8 The Financial Regulator 8 Task 2 Graphs 10 Shop lifting 10 Burglary 11 Storm and High winds 11 Act of God 12 Flood 12 Fire 13 Suggested changes to reduce the theft risk 14 Conclusion 14 Bibliography 15 Introduction Insurance Insurance plays a very important role in today’s economy. Insurance is designed to protect the financial well-being of every individual and business. Without insurance we couldn’t drive cars, own our homes, run our business-because of the possible risks. General Introduction Insurance is a risk transfer mechanism which in return for a fee (‘premium’) will insure individuals or business against the risk specified. Aim of insurance is to compensate (‘indemnify’) the loss individuals or business may suffer through the occurrence of an unexpected incident, the loss that either may or may not happen. ‘Modern insurance low’ author John Birds, wrote that the beginning of insurance was developed by a commercial world in 14th century. The origins of the modern insurance contract was......

Words: 2168 - Pages: 9

Free Essay

Auditing an Insurance Company

...I. Overview of the Insurance industry Insurance companies play a major role in today’s financial industries. While the banking industry is creating assets and wealth, the insurance industry is protecting that wealth. The primary business purpose of an insurance company is to spread risk among people or entities that are exposed to similar risks. The insurance industry thrives in marketing uncertainties, selling promises, and making more money by cycling their revenues back into the nation’s building process. Insurance companies are global by design massive in numbers. The insurance industry, like many other industries, have changed dramatically over the years and is constantly being reshaped by factors such as changing interest rates, tightening legislation, growing competition, and even medical advancements. However, the major difference between the insurance industry and all other industries is that the insurance industry accumulates cash first and pay claims costs in the future. In fact, the insurance company does not even know if a claim will occur, when a claim will occur, and how much the claim will cost. II. Insurance Industry Structure Basic Classifications There are three main types of insurance companies: life, property and liability, and title insurance companies. Companies are further divided into primary policy writing and reinsurance. Primary writing is when insurance companies issue new insurance policies and maintain those policies throughout the policy......

Words: 3248 - Pages: 13

Days of Our Lives | 下载 APK | Mon.Oliwa Z Ol.Ex.V.Rozmaryn 250 Monini 250Ml 15 ,28 zł