The need of any insurance lies in the provision of compensation to the insured following a loss which is covered under the policy. In essence, the risk is transferred from the insured to the insurer. As a result, customers pay a known amount known as the ‘premium’ with the anticipation that should something go wrong and as a result a loss would be suffered, the insurer will compensate them financially. The customers are thus buying peace of mind and it is at the claims stage that the insurance organisation will prove its worth.
Thus, a thorough understanding of the concepts of insurance and the principles of insurance will ensure that the persons working within the technical departments of insurance sellers and intermediaries shall provide the necessary information to the clients. The concepts of Insurance and the legal principles of insurance are the foundations for all insurance business and therefore need to be clearly understood. If the information provided to customers is incorrect or not clearly explained, the relationship with the customer can be terminated and consistently poor misguidance will not only severely jeopardise the reputation of the insurer, but also risk legal action.
It is thus fundamental that any person working within the insurance sector should possess a good understanding of the concept of risk relating to insurance, the principles of insurance and the structure of the local insurance market. This course will give an introduction to the concept of risk for insurance purposes and the pillars of insurance, better referred to as the principles of insurance. The local structure of the insurance market, with particular reference to the sellers and intermediaries working within the market will also be examined. A comprehensive understanding and application of the content within this unit will enable successful students to easily integrate into the insurance market. Furthermore, the unit will provide students with other skills required to work within a technical department.
