Task 2 For Midterm exam Group: mm53 I Full name

Question 5: Licensing for insurance companies
Licensing is a task of Insurance market development agency. Licensing can be divided into two groups: licensing insurance companies and licensing insurance brokers.
Insurers and brokers should meet some requirements to get a license:

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  To follow all regulatory documents about “Insurance activity”
  
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  To provide security of information
  
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  To give all necessary documents to licensing organization
  
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  To have qualification according to defined requirements (for General director and main accountant)
  
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  Not to be a director in another insurance company
  

As an insurer you need some documents to get a license:
Qualification, Diploma, Employment history, Document about the payment of license, Bank information about General Fond.
There is also a certain amount of fee to get a license. It is now tive times of basic calculation amount. After that experts check the above-mentioned documents and need to give summary in 17 days following which they should answer in 3 days.
If there is no answer from licensing organization, insurance company can start insurance activity. But they need to inform licensing organization in a written form.
There are three reasons that might cause a cancellation of your license request:
1.No payment in 3 months
2.Don’t provide with the document about payment
3.Don’t sign the agreement
In three cases you have to re-register:

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  If license holder is changed
  
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  If company name is changed
  
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  If address is changed
  

Question 6: Tariff policy in insurance
Insurance tariffs are in percents, and set according to the cost of insurance activity for the specific period of time.
There is Brutto calculation term which includes netto calculations(Reserve for indemnity) and insurance activity expenses. 60-95% of Brutto calculation is for reserve for indemnity and 5-40% for insurance activity expenses.
In defining insurance tariffs, there are a number of important factors:

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  Probability of risk occurrence
  
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  Average amount of insurance premium
  
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  Average amount of payable indemnity
  

Then we look at methodology of insurance tariffs. First, we divide insurance objects into groups and define different characteristics of each group. After that we evaluate them numerically and make a database. The last, we enter this database into a software so that it calculates the insurance tariffs.
Who is an actuary?
A professional with a qualification certificate, who specializes in the field of analyzing financial risks. It helps companies in the estimation of premiums for their policies. Actuary check is taken place at least once in a year for a six-month period.