Insurance Fundamentals
This is the amount paid for coverage.
Premium
Insurance companies also earn money by doing this with the premiums they collect.
Investing
What 3 features define specialty insurance?
Risk Uniqueness
Customization/Complexity
Underwriting Judgement
The _____ is the individual or business purchasing insurance.
Insured / Client
Insurance policies are ultimately this type of agreement.
Legal contract / legal agreement
The global insurance industry writes about how much in premiums? In other words, how much is the industry worth?
$6.3T
Insurance works because many people pay premiums, but only some people experience this.
Loss / Claim
These customized policies are often called this type of policy.
Manuscript policy
The advisor who works directly with the client/insured.
Retail agent/broker
When a standard carrier declines a risk, where does that risk typically go? (Hint: Name the market itself)
Excess & Surplus Lines / E&S
What is the term for "insurance for the insurance companies"?
Reinsurance
Risk pooling works because:
The premiums of many pay the losses of the few.
Specialty risks often have low frequency but ____ severity.
High
_____ is the intermediary connecting retail brokers to specialty markets.
Wholesale broker
Berylline builds and acquires ______.
MGAs
Name each stage in the insurance cycle.
Catastrophe -> Hard Market -> Capital Enters -> Soft Market
If an insurance company pays out too much money in claims compared to premiums, their _____ becomes too high.
Loss ratio
Specialty insurance relies heavily on this professional’s judgment.
Underwriter
The entity that provides capital and issues the policy.
Carrier (insurance company, insurer)
Name at least 2 of Berylline's group companies.
ARU / HabGen / Surestead
The formula for loss ratio.
Claims Paid ÷ Premium Collected
Risk uniqueness essentially means _____.
No historical data / actuarial data / no information about a risk.
Specialty insurance is often needed when a risk does not fit into the _____ insurance market.
The company that provides insurance to insurers.
Reinsurer
Who is the CEO of Berylline?
Will Johnson