What Is a Property and Casualty Insurance License?

Property insurance policy refers to the formal style of the property insurance contract, and it is the main basis for the insured and the insured to claim against the insurer or the insurer to process compensation. [1]

Property insurance policy

Right!

Property insurance policy refers to the formal style of the property insurance contract, and it is the main basis for the insured and the insured to claim against the insurer or the insurer to process compensation. [1]

A property insurance policy is a written proof that the insurer and the insured have entered into an insurance contract. It is not a securities or a property that can be discounted or sold. Therefore, property insurance policies cannot be used for mortgages. [2]

Chinese name

Property insurance policy

Foreign name

account

The method of determining insurance rates can be divided into three methods: evaluation method, classification method, and increase and decrease method.

(I) Evaluation method

The evaluation method is a method of determining the rate separately. Each risk unit sets its own rate according to its characteristics, without involving any risk level identification or calculation formula. Although the evaluation method is not scientific, it is still used by some insurance types, especially in the absence of sufficient and reliable statistical data. When developing new types of insurance, people use other rough statistics to evaluate each risk unit, otherwise the rate cannot be determined.

(Two) classification

The taxonomy is to combine the same risks into the same level and at the same rate. This method is also called the hierarchical method or comprehensive method, and is often used for fire insurance and accident insurance.

Premiums include net premiums and additional premiums. There are two ways to calculate the net premiums when using classification methods to determine rates:

1. Pure premium method

The pure premium method is a method of calculating the pure premium by multiplying the average loss frequency of each risk unit by the average loss range. Its calculation formula is:

P = F × S

Among them, F is the average loss frequency of each insured unit, S is the average loss range, and P is the pure premium.

The pure premium method is widely used in automobile insurance and other liability insurance.

2. Loss rate method

Loss rate or claim rate refers to the ratio of the sum of claims and claims costs to the premiums for a certain period. The loss rate is therefore a proportion rather than an amount. Since we must calculate the loss rate after the insurance period expires, the existing rate can only be adjusted after the insurance period expires. Its adjustment formula is:

Looking at the world insurance market, in order to adapt to social and economic development, property insurance is also continuously introducing new insurance policies to meet market demand. Despite the wide variety of insurance products, we can still see the development trend of property insurance policies. From the perspective of the function of the insurance policy, it is the easiest way to provide comprehensive protection; from the marketing method, it is borrowing the method of group insurance policies of life insurance. In this way, comprehensive insurance policies and group property liability insurance policies will be further developed.

(1) Comprehensive insurance policy

We already know that according to the classification of risk accidents covered by insurance policies, property insurance can be divided into listed insurance policies and comprehensive insurance policies. From the experience of various countries, the market is increasingly inclined to choose the latter rather than the opposite.

The premium rate of a comprehensive insurance policy will be higher than the listed insurance policy, but its advantages are more obvious. The most important thing is that the comprehensive insurance policy provides a package of insurance, and the insurer does not have to insure multiple insurance policies according to different risks. This can avoid the overlap of coverage that may be caused by multiple insurance policies and avoid risks that may be omitted. Get comprehensive protection. For the insurer, because the comprehensive insurance policy covers the scope of coverage except the non-insurance matters, the definition is clearer and simpler, which can reduce disputes. At the same time, replacing one insurance policy with one insurance policy can reduce the cost of signing, which is beneficial to both parties.

(2) Group property liability insurance policy

The life insurance industry sold group insurance earlier. To this day, the property liability insurance industry has also developed group insurance policies. Like group life insurance policies, the advantages of group property liability insurance policies are obvious: first, the application procedures are simple. The insurer only needs to issue an insurance policy and give each insured an insurance certificate, which greatly simplifies the application procedures. Second, the premiums are low. Group insurance can reduce operating expenses on the one hand, and can also claim group discounts. From the insurer's perspective, group insurance can expand their business and reduce their rates.

After the introduction of the revised "Insurance Law", property insurance companies were allowed to operate short-term health and personal injury insurance business, which provided an opportunity for insurance companies to launch new products and add new business growth points. In the future, as the country s regulatory oversight of the insurance market will shift from operational oversight to solvency oversight, insurance companies' operating authority will be further expanded. Insurance companies will also pay more attention to the diversification of business methods and products, and more emphasis on product design and Publicity.

1 Hu Yuancheng. Property Insurance. Dongbei University of Finance and Economics Press, August 1999, 1st edition

2 Sun Yun, Lou Xiao. Legal Application Basis and Practical Data of Contract Guarantee Law. Shanxi Education Press, 2006.12

3 Wei Hualin, Lin Baoqing. Insurance (Second Edition). Higher Education Press, March 2006, Second Edition ^[1]