Beruflich Dokumente
Kultur Dokumente
by
Beatrixe Marie G. Calpo
Chazedelk G. Cerdena
Ash Macalalad
Joebeth Espinosa
Jm Avila
Bradford Bailo
Joshua Almira
Kristel Manahan
Pauline De Joya
Daniel David
4ELM
security
products
the
insurance
industry
complements
and
2|Page
Insurance is one of the very important financial services from all over
the world. It is one of the most grooming sections of the economic growth
and development. This industry is the major source of the long term funds
which is required for the development of the necessary infrastructure for the
country.
The insurance business environment consists of set of factors and
variable that provides various threat and opportunity to the operations of the
insurance business. The Factors and variable may not always be poisonous;
they may bring much good news to the existing business players. The
insurance business environment can be broadly classified as follows:
3|Page
Since all insurance companies have the same business environment, the
researchers elect to do a research on Indian insurance companys business
environment. And will set it as an example.
4|Page
number
of
insurance
companies
are
selling
risk
5|Page
6|Page
effective
lead to
greater
8|Page
12 | P a g e
13 | P a g e
14 | P a g e
Legal Environment
The insurance sector cannot work in isolation. Its operations, growth,
and development are always conditional by various factors of which external
business environment is one of the significant factors. There are various
laws and acts which have direct or indirect applications in the insurance
15 | P a g e
17 | P a g e
with
them
experience
of
financial
and
commercial
business
environment that will enrich the Insurance Sector. Most of the Private Sector
players who have entered the Insurance Sector so far have rich experience
of working in the Financial Sector with vast commercial acumen and scope of
18 | P a g e
efficiently
the
financial
sector
performs
this
basic
function
of
19 | P a g e
(II)
20 | P a g e
airports,
ports,
railways,
water
irrigation
projects,
and
competitiveness.
We
should
not
forget
about
the
of
technology
particularly
in
service
industry,
viz.
22 | P a g e
23 | P a g e
24 | P a g e
26 | P a g e
Insurance companies are like any other business in the world. They
have to make a profit to stay in business. There are two basic ways this can
be accomplished. They can earn underwriting income, investment income, or
both.
Underwriting Income
Underwriting income is derived from the difference between how much
money is collected for all policies sold versus how much money is paid out
in insurance claims for those policies in any given time period.
For example, Insurer A may collect $1,000,000 in premium for
polices issued or renewed in a given year. If they pay less than $1,000,000
in claims, they have made a profit. If they pay more than $1,000,000 is paid
in claims, they suffer a loss. Insurers have a unique way to earn massive
amounts of additional profit. Unlike many other types of businesses,
insurance companies collect huge sums of cash throughout the year and
may not have to pay on claims on those policies for many years.
Investment Income
This unique situation allows insurance companies to invest that money
while its not being used. Huge profits can be reaped, or lost, as a result.
27 | P a g e
28 | P a g e
30 | P a g e
(between
reinsurers
and
insurers/cedents)
require the highest level of utmost good faith, and such utmost good faith is
considered the foundation of reinsurance. In order to make reinsurance
affordable, a reinsurer cannot duplicate costly insurer underwriting and claim
handling costs, and must rely on an insurers absolute transparency and
candor. In return, a reinsurer must appropriately investigate and reimburse
an insurers good faith claim payments, following the fortunes of the cedent
Warranties
In commercial contracts generally, a warranty is a contractual term,
breach of which gives right to damages alone; whereas a condition is a
subjectivity of the contract, such that if the condition is not satisfied, the
contract will not bind. By contrast, a warranty of a fact or state of affairs in
an insurance contract, once breached, discharges the insurer from liability
under the contract from the moment of breach; while breach of a mere
condition gives rise to a claim in damages alone
34 | P a g e
regulation,
and
in
consistency
with
the
European
Treaty
35 | P a g e
to
completely
regulate
and
then
currently
being
partly
the
about
100
general
insurance
companies
then
and
subsequently merging them into four companies. All the companies were
amalgamated into National Insurance, New India Assurance, Oriental
Insurance and United India Insurance, which were headquartered in each of
the four metropolitan cities.
Until 1999, there were no private insurance companies in India. The
government then introduced the Insurance Regulatory and Development
Authority Act in 1999, thereby de-regulating the insurance sector and
allowing private companies. Furthermore, foreign investment was also
allowed and capped at 26% holding in the Indian insurance companies. In
36 | P a g e
37 | P a g e
insurer
declares bankruptcy,
many
countries
operate
independent
when price
fixing occurs
between
insurers,
creating
an
unfair
41 | P a g e
42 | P a g e
43 | P a g e
any
person
compulsorily
covered
by
the
GSIS
under
the Commonwealth Act 186, or any person compulsorily covered by the SSS
under Republic Act 1161. Such employee is automatically covered for these
government mandated employee benefits.
As an employer, whenever you hire a new employee, you are required
to update the following government agencies about his new employment:
44 | P a g e
If the employee has no TIN yet, you need to require the employee to
file BIR Form 1902 to the revenue district office (RDO) where your
company is registered.
If the new employee has TIN No. with a previous employer registered
in the same RDO as your company, either your employee or HR
personnel
needs
to
submit BIR
Form
2305 to
update
his/her
information.
If the new employee already has a TIN No. but his/her previous
employer is registered in a different RDO as your company, then the
employee will need to submit a BIR Form 1905 in the RDO where his
previous employer is registered.
45 | P a g e
service
(Republic
hospitalization
Act
subsidies
7875).
Members
should
they
or
are
a
given
health
and
dependent
be
46 | P a g e
members for when they are unable to work such as sickness, disability,
maternity, old age and death, or other such contingencies not stated but will
result in loss of income or result to a financial burden.
The amount of SSS monthly contribution is determined from the actual
monthly salary an employee receives 30% of total monthly contribution is
deducted from an employees salary, while 70% is subsidized by the
employer.
Before you can update your employees SSS, you need to ask for your
employees SSS No. If your new employee is not yet an SSS member, you
should require him/her to register in the SSS office where your company is
registered.
You as employer will also need to fill up and submit an SSS Form R1A
that contains the list of your new employees with their respective SSS No.
The SSS Form R1A should be submitted in the SSS office where your
company is registered or you can also do it online using their online portal
for employers.
47 | P a g e
to
the
Home
Development
Mutual
Fund
(Republic
Act
government agency provides the lowest interest housing and land acquisition
loans to its members that are payable for up to 30 years. This gives every
Filipino worker an opportunity to own a house in easy-payment plans that
can directly be deducted from their monthly wages.
For new employees, they can register as a new member online. All
your new employees can be easily updated through the Pag-ibig online web
portal. Or you can just add the employee in the HDMF Form MCRF, and then
mark as NH (Newly Hire), when you are filing the monthly HDMF
contribution.
48 | P a g e
49 | P a g e
notes.
(n.d.).
Retrieved
from
insurance
business
environment:
http://nakulanand.in/files/documents/insurance-businessenvironment---an-introduction.pdf
Full suite Corporation. (n.d.). An Employer's guide to registering employees
in
the
Philippines.
Retrieved
from
Full
suite:
http://full-
suite.com/blog/employers-guide-registering-employees-philippines/
How do Insurance companies make money. (2008). Retrieved from the truth
about
insurance:
http://www.thetruthaboutinsurance.com/how-do-
insurance-companies-make-money/
HUssain, S. (n.d.). The secret to how insurance companies make their
money. Retrieved from http://insurance.credio.com/stories/3670/howinsurance-companies-make-money
Wikipedia.
(2015).
Insurance
Law.
Retrieved
https://en.wikipedia.org/wiki/Insurance_law
50 | P a g e
from
wikipedia: