General Insurance - ACS 310

This is a general non mathematical introduction to the major functions of insurance companies starting from their “raison d’etre” and ending with an explanation of the different coverage offered under Personal Insurance; Topics include: Types of Risk and Risk Management Methods; Objectives of Risk Management; Risk Pooling and Risk reduction through Pooling and Insurance Institutions; Cost of Risk Pooling (Insurer Insolvency, Insurer Operations and Reinsurance); Insurance Pricing (Determinants of Premium, Investment Income and Loadings); Experience Rating (Full and Partial Credibility); Estimation of outstanding claim provisions, delays in claim reporting and settlement; Chain Ladder method with and without inflation; Estimation of Incurred but not yet reported Claims (IBNR); Demand of Insurance by Individuals and by Businesses; Types of Personal Insurance(Automobile, Homeowners and life insurance and annuities) explaining for each the exposed to risk population, the pricing and underwriting cycle. Prerequisite: MAT 325 or MAT 326.