IF4

These are required by the Companies Act 1985. Profit and Loss (shows the transactions carried out by a company during the financial year) Balance Sheet  (shows the statue of the company at the end of the financial year, it also shows the             assets and liabilities of the company). Premium reserves and IBNR claims are in […]

Financial Conduct Authority (FCA) – is responsible as follows: 1. That the market operates with integrity. 2. Promote effective competition. 3. Requires firms to put the wellbeing of their customers at the heart of how they run their firms. The Financial Services Act 2012 requires: 1.  The Financial Policy Committee (FPC) using its macro prudential […]

Introduction:  The claims department is not only the “Show Window” of the insurance company but the department with the largest expenditure hence there is the requirement that claims be paid without wastage of the funds which belongs to all policyholders. In addition, if the claims handler constantly under reserve, there may come a time when […]

The MIB was established in 1946 by agreement between the insurance industry and the government  to provide compensation for injury or property damage to road users, caused by uninsured or unnamed drivers. It is funded by a levy on each motor insurance company. Membership of the MIB is compulsory and they administer the fund. In […]

Excesses, Deductibles and Franchises: Excesses: This is the first part of each claim which the insured must bear, it only applies at the time of claim, hence if there is not claim, there is no excess to pay. Compulsory Excesses: These are deducted for each and every claim and deducted from claim payment. They are […]

 In the past these were introduced with the following aims:- 1. to reduce the cost of dealing with claims 2. to speed up the repairs and claims settling procedures. 3. to promote good relations between insurers. These agreements, across the market, have largely been discontinued  and have been replaced by individual      agreements between insurers.         1. […]

A claims handler has an important role to ensure for each case, the reserves are adequate (this does affect the global reserve). Different companies, have different strategies but it is important to know what these are (found internally). Reserves are required for ALL aspects of the claims including: a. damage to property (either own or […]