Insurance

The essence of insurance marketing

Marketing is a philosophy of the underwriter, determining the strategy and tactics of his activities in the conditions terms of competition. Marketing simultaneously combines market research, new product development, distribution, advertising, promotion, product improvement and so on.

Economic essence and functions of insurance.

Insurance is a complex of economic relations associated with forming the insurance fund at the expense of the insurers with the purpose of covering the loses caused by some unfavourable events, stipulated in the contract.

Forms of insurance activity.

Nowadays there are the insurance companies of the following legal forms:

Joint-stock insurance companies are companies that are formed to carry out insurance operations, which nominal capital is formed by issuing or selling shares. They usually function on the same legal basis as other joint-stock companies and can carry out any kinds of insurance on license basis.

Motor-vehicle insurance

Motor-vehicle insurance is one of the kinds of transport insurance whose objects are mechanised and other means of transport. This kind of insurance is voluntary.

The insurance of the civil responsibility of car-owners.

Insuring the civil responsibility of car-owners, underwriter undertakes to compensate damages to third persons that resulted from the insurer’s maintenance of the automobile. On the territory of RM this kind of insurance is obligatory.

Commercial risks insurance.

Entrepreneur activities and insurance are two closely interconnected categories of the market economy.

The main aim of entrepreneur activities is getting profit, increasing capital invested into business. That is why insurance against possible loss of expected profit or unearned profit becomes very important.

Life insurance

The distinguishing feature of this insurance is its double function: risk and accumulative one. Life insurance contract can be concluded in favour of a physical person from his birth (but at the moment of concluding the contract his or her age should not exceed 70 years old). Insurance contract can’t be concluded in favour of disable persons, if they are more than 49% disable (I and II group invalids).

The essence and the meaning of reinsurance.

Reinsurance is a system of economic relations in the process of which the underwriter, undertaking insurance against risks, passes part of their liability on (taking into account his financial possibilities) to other underwriters under agreed conditions in order to create a portfolio of insurance contracts, to provide financial stability and profitability of insurance activities.