What is the subscription income?
income subscription is the total amount of money that insurance company from the insurance premium as soon as the demands and operating costs have been deducted. Usually it is not the same as the total profit of the company, but is usually close. Investors often check the income of insurance providers as a means of assessing how well the provider structured their business and how effective its subscribers are in the measurement and predicting market trends. This number is often used as a scale to assess business success or failure in a given period.
Insurance companies earn most of their money by selling policies in all markets. Politics holders pay a certain bonus every month, which is essentially their safety against calamity. In the environmental environment, the calamity is premature death, but politicians exist for almost every loss, from houses and cars to valuable personal assets and even holiday plans. The money collected in the bonuses is the first semi -halfOut of subscription.
The calculation of subscription income is relatively simple. First, the company must consist of how much money came through the premium. All paid demands must be deducted together with most general operating costs. This category includes accounts for services, salaries of employees, tax liability and the like. The resulting number, if positive, is known as subscription income; If it is negative, it is called the loss of subscription.
Most insurance providers have determined the amounts of the bonus according to the Council of Professional Subscribers. The insurance subscriber assigns to potential clients the value of policies based on a number of facts. Personal history and age are almost always considered, along with placement and other more subtle facts such as the age of the house or model and model of the car. Usually it is true that people with the lowest risk of putting the claim are given most competitivelyInsurance rates, while those who seem to be more likely to be involved in some misfortune must often pay much more. Many of this is the protection of the lower line of the insurance company - and especially its subscription revenues.
It is usually in the best interest of the insurance company to keep clients who are unlikely to claim claims. If something that was insured - for example, a car accident, or into the house - policy holders - are usually able to claim the insurance company to pay damages. If there are no calamities, the insurance company simply gets all the money paid.
Subscribing is usually evaluated every year. Most insurance contracts are issued year -on -year, so annual reviews are often able to provide the best image of the overall fiscal position. However, some companies perform internal audits of reception in the middle of the year just to get an idea of what to expect. Insurance of the provoker, toTerý realizes that he is in danger, that he will soon have subscription losses, he is often able to save himself in time to save his annual numbers.
It is not always possible to project subscription income in advance. Natural disasters, such as earthquakes, floods and hurricanes, often lead to numerous demands on the insurance of victims and household insurance at the same time. It may also happen that a number of generally "safe" clients will claim claims in a given year when none of them before. The insurance is largely revolving around the risk and the income of the subscription follows. Loss of subscription often hurts the professional position of the insurance company, but it is not always damn: there is always another year and many new chances to better predict demands.