Tag Archives: The Business of Insurance

What is an Insurance Actuary?

Life is filled with uncertainty. We all face events that are unexpected and happen. “Risk” what is possible–those things that could be horrible–but, might actually happen to us. An Actuary is a person who is an expert in the following skills: Evaluates of the possibility that something horrible might happen in the future. Looks for simple, and creative ways to control, eliminate or reduce the odds of something horrible happening in the future. Finds methods to decrease the impact when something horrible does actually happen. Insurance serves one major function and that’s to help decrease the impact when something horrible … Continue reading →

What is An Insurance Agent?

An insurance agent represents an insurance company or insurer that pays the agent a commission for transacting business with the insurance company or insurer. An agent works for the insurance company and keeps his primary obligation on representing the companies that he writes insurance with. This is very different than an insurance broker who is a representative for the customer, the insurance buyer. The difference between an Insurance Agent and an Insurance Broker is an important issue if there is a situation of claim and there is a reason to determine which professional is responsible for an error or omission. … Continue reading →

More About the Business of Insurance.

In the first Blog about The Business of Insurance I covered the basic outline of what the Insurance Industry is about. In this Blog I want to talk about what an Insurance Company does to determine premium and what they do with the premiums we pay. An insurance company accepts the risks associated with the contract policy a customer requests. Based on the information a customer provides, and the underwriting conditions a premium is established for the cost of the contract policy. When the insurance policy is issued a declaration will be sent to the customer. In the declaration the … Continue reading →