Insurance Operations
The main operations of the insurance companies are
- Marketing
- Underwriting
- Claim handling
- Ratemaking
Marketing is the process of identifying customers and selling and delivering a product or service. Insurance marketing enables insurers to reach potential customers and retain current ones.
Underwriting is the process by which insurance companies decide which potential customers to insure and what coverage to offer them.
Claim handling enables insurance companies to determine whether a covered loss has occurred and if so the amount to be paid for the loss.
Ratemaking, another important insurance operation, is the process by which insurers determine the rates to charges the thousand (or millions) of similar but independent insureds. Insurers need appropriate rates to have enough money to pay for losses, cover operating expenses and earn a reasonable profit.
FUNDAMENTALS OF INSURANCE
