COVER STORY
Braving Bioterrorism
- - T S Rama Krishna Rao
What cannot be measured cannot be underwritten is the golden rule in insurance. Quantification of terrorism risk is very difficult, more so in the case of bioterrorism. The state is forced to chip in as an insurer of the last resort. A case in point is the Terrorism Risk Insurance Act, 2002 of the US and its latest version, Terrorism Risk Insurance Extension Act, 2005. Underwriters are yet to find a lasting solution to insure this gigantic risk.
© 2006 IUP . All Rights Reserved
MANAGEMENT
Competing through Knowledge
- - Samuel B Sekar
Changing customer needs, rising customer acquisition and maintenance costs, fall in customer and employee loyalty, etc., have resulted in unprecedented importance being laid upon the only sustainable competitive asset, "the knowledge asset". Enhancing the utilization of knowledge asset by creating a knowledge-centered culture is essential, which is possible only by encouraging knowledge creation and dissemination.
©2006 IUP . All Rights Reserved
LIFE INSURANCE
Scale Up for Success :The Mantra for Private Life Insurers in India
- - Rajesh C Jampala and Polavarapu Adilakshmi
The Indian insurance sector was opened to the private sector in 1999 and today there are 15 private life insurance companies. Long-term nature of a business, stringent solvency norms, capital on FDI limit at 26%, expense overruns, new business strain, low agent productivity, high attrition levels of agents, low average premiums, high competition in the market place, capital constraint, and value-conscious nature of Indian retail customers are some of the reasons for underperformance of private insurers in India. Consolidation in the sector is inevitable. By acquiring scale, managing expenses and being selective about the quality of business they write private insurers may be successful.
© 2006 IUP . All Rights Reserved
CLAIMS MANAGEMENT
Nomination by a Policyholder
- - A S Dalal and Saurbh Kothari
In the case of every insurance policy, the holder nominates a person who gets the money in case of his death. This is the concept of nomination. There are various issues linked with this concept and has been debated upon since a long time. This article basically analyzes the issues and the possible measures to resolve them.
© 2006 IUP . All Rights Reserved
HEALTH INSURANCE
Turning Debate into Action
- - Jon Camire and Dianna Welch
This article discusses the healthcare reforms initiated in the state of Massachusetts for significant reduction in the number of the uninsured. The state has transformed rhetoric into tangible results.
© 2006 Contingencies. This article was originally published in Contingencies, the magazine of the American Academy of Actuaries. Reprinted with permission.
BUSINESS ENVIRONMENT
Power Rush
- - Mark Cooper
A hurricane onslaught, skyrocketing oil prices, political instability in the main oil-producing areas: No wonder the energy market is feeling bruised. Mark Cooper looks at how the industry is squaring up to the challenges.
© 2006 Chartered Insurance Institute (www.cii.co.uk). Reprinted with permission.
INSURANCE OPERATIONS
Sharing of Information between Insurers to Fight Fraud
- - Barry Zalma
Often insurers, faced with enormous losses, are reluctant to communicate with each other or the police. The NAIC and many state legislatures support legislation designed to encourage insurers to share information when the goal is to fight fraud.
© 2006 International Risk Management Institute, Inc. Reprinted with permission.
REGULATION
Public Hearing on Solvency II : European Commission - Insurance and Pensions Unit
- - Henrik Bjerre-Nielsen
This article focuses on the development of new regulatory and supervisory system using a new method, "the Lamfalussy process". It also emphasizes on ensuring a level playing field with regard to prudential regulation and supervision of insurers throughout the European Union.
© 2006 Committee of European Insurance and Occupational Pensions Supervisors. Reprinted with permission.
NON-LIFE INSURANCE
Weather Worries : Northeast Hurricane Conference Issues Warning
- - Phil Zinkewicz
This article brings out the views of eminent panel members on the potential effects of a hurricane in Northeastern US.
© 2006 Rough Notes. Reprinted with permission.
SPOT LIGHT
Royal & Sun Alliance Insurance Company
- - G Vasavi
Royal & Sun Alliance Insurance Company was established in 1710 and has a proud heritage dating back to almost 300 years. Sun is the oldest insurance company still trading under its original name. The current company structure is a merger of two of the largest insurance companies in the United Kingdom, Royal Insurance and Sun Alliance in 1996. The company is a Financial Times Stock Exchange (FTSE) 100 company, listed on both the London and New York Stock Exchanges.
© 2006 IUP . All Rights Reserved
POLICY SPEECH
The Role of the Regulator and the Responsibility of the Buyer in the Insurance Chain
- - John Tiner
This speech outlines the changing role of the regulator. It lays emphasis on a risk-based approach that facilitates growth, innovation and competition. It deals with the responsibilities of the buyers of insurance.
©2006 Financial Services Authority (www.fsa.gov.uk). Reprinted with permission.
CASE STUDY
Pillion Rider Victim is Not Third Party : A Case of Strange Justice?
- - S Ravi
The case study deals with the latest decision of the Supreme Court confirming the exclusion of gratuition passengers from the third-party risk. Insurance as a method of risk mitigation has grown significantly. The motor vehicle act prescribes statutory insurance for vehicles. The provisions require a user of vehicle to insure against injury or death caused to a third party. Voluntary insurance requires a person to insure against loss to oneselfeither through injury or death, or through having to pay for injury caused to another.
©2006 IUP . All Rights Reserved
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