Insurance function can be classified in three functions, namely a primary function, function, and other related subsidiary function
Primary function (primary function)
Risk Transfer
Insurance is a risk transfer mechanism, where individuals or entities can definitely something that does not divert to other parties, with the amount of premium is relatively small compared with possible losses, the uncertainty of those losses to the insurance diahlihkan.
Common Pool
In the early onset of marine insurance, the traders at that time agreed to contribute to the losses (due to the risk of sea) experienced by a person in between them. Such practices are not fully transfer risk but only reduce the risk.
In its development contribution is set at the beginning before any harm, so that each can know exactly the load contributions, namely the so-called premium pay. Premiums are received and collected in a fund or pool, and was developed to overcome the claim occurred.
Equitable premiums
Assuming that the transfer of risk has been done through a common pool, the main function of the third is the contribution payable by each participant must be fair.
Level of risk experienced by each participant may differ, for example for buildings made of wood have a higher level of risk compared with buildings of stone. Drivers who are 18 years of higher risk compared with drivers aged 50 years. Likewise, the value of goods insured is not always the same. Differences regarding the level of hazard and the consequences it will bring big contributions (premiums) charged. Things like these are now the basis of the underwriters in setting premium rates.
Subsidiary function (secondary function)
Stimulus to business enterprise
Function as a driver of business reflected in the activities of insurance investments from the insurance fund. In addition to the insurance can give investors the courage to build a new business or expand their business.
Loss prevention
Labor insurance surveyors much training and experience in identifying a risk of making himself has the ability to provide loss prevention advice.
Loss prevention functions as reflected in the advice direkomendir by an insurance surveyor to do the things that can prevent loss.
Theft insurance surveyors can advise on the installation of detectors that can prevent or hinder thieves.
Surveyor liability insurance (liaiblity insurance) can provide advice in the prevention of public claims due to working conditions or the production
Loss Control
Recommendations from an insurance surveyor is not just limited to the prevention of loss but also provide recommendations for ways to reduce losses. Advice to meet the requirements of building construction, installation of sprinklers, alarms, an attempt to control the losses if the risk occurs.
Surveyors may not be able to prevent the thief entered, but the surveyor can suggest something that may limit, complicate, impede, or slow down a thief.
Social benefits (social benefits)
Claims paid by insurance enables entrepreneurs to rebuild the factory / business, so as to avoid any layoffs due to factory on fire.
Insurance activity in itself create jobs.
Through insurance, can be provided funds to address social problems, such as satuanan the disabled, widows, orphans.
Savings (savings)
In life insurance products in particular guarantee the payment of endowment insurance either dead or alive at the end of the contract, the payment received by the insured at the end of the contract is basically an accumulation of premiums plus interest.
Other related function
Investment funds (investment of funds)
The set of insurance funds (premiums) are earmarked to pay claims, is a source of investment funds that give rise to investments in money market and capital markets.
Service revenue (invisible earnings)
Insurance and reinsurance transactions occur in a wide range between countries.
A country that a lot of premium income received from other countries is income country concerned of trade in services.
In Indonesia, the opposite is true. Insurance companies in Indonesia that puts a lot of reinsurance abroad, so the balance of our trade deficit because it is the acceptance for payment of premiums abroad and spending for Indonesia.
The reason, among others:
lack of technology and knowledge
lack of integrity of the insurance business
Insurance companies in Indonesia to pay claims from the reinsurance overseas so that the function of the insurance company only as an agent / broker only.
minded consumers are still abroad (lack of nationalism), so selecting an insurance company abroad.
Primary function (primary function)
Risk Transfer
Insurance is a risk transfer mechanism, where individuals or entities can definitely something that does not divert to other parties, with the amount of premium is relatively small compared with possible losses, the uncertainty of those losses to the insurance diahlihkan.
Common Pool
In the early onset of marine insurance, the traders at that time agreed to contribute to the losses (due to the risk of sea) experienced by a person in between them. Such practices are not fully transfer risk but only reduce the risk.
In its development contribution is set at the beginning before any harm, so that each can know exactly the load contributions, namely the so-called premium pay. Premiums are received and collected in a fund or pool, and was developed to overcome the claim occurred.
Equitable premiums
Assuming that the transfer of risk has been done through a common pool, the main function of the third is the contribution payable by each participant must be fair.
Level of risk experienced by each participant may differ, for example for buildings made of wood have a higher level of risk compared with buildings of stone. Drivers who are 18 years of higher risk compared with drivers aged 50 years. Likewise, the value of goods insured is not always the same. Differences regarding the level of hazard and the consequences it will bring big contributions (premiums) charged. Things like these are now the basis of the underwriters in setting premium rates.
Subsidiary function (secondary function)
Stimulus to business enterprise
Function as a driver of business reflected in the activities of insurance investments from the insurance fund. In addition to the insurance can give investors the courage to build a new business or expand their business.
Loss prevention
Labor insurance surveyors much training and experience in identifying a risk of making himself has the ability to provide loss prevention advice.
Loss prevention functions as reflected in the advice direkomendir by an insurance surveyor to do the things that can prevent loss.
Theft insurance surveyors can advise on the installation of detectors that can prevent or hinder thieves.
Surveyor liability insurance (liaiblity insurance) can provide advice in the prevention of public claims due to working conditions or the production
Loss Control
Recommendations from an insurance surveyor is not just limited to the prevention of loss but also provide recommendations for ways to reduce losses. Advice to meet the requirements of building construction, installation of sprinklers, alarms, an attempt to control the losses if the risk occurs.
Surveyors may not be able to prevent the thief entered, but the surveyor can suggest something that may limit, complicate, impede, or slow down a thief.
Social benefits (social benefits)
Claims paid by insurance enables entrepreneurs to rebuild the factory / business, so as to avoid any layoffs due to factory on fire.
Insurance activity in itself create jobs.
Through insurance, can be provided funds to address social problems, such as satuanan the disabled, widows, orphans.
Savings (savings)
In life insurance products in particular guarantee the payment of endowment insurance either dead or alive at the end of the contract, the payment received by the insured at the end of the contract is basically an accumulation of premiums plus interest.
Other related function
Investment funds (investment of funds)
The set of insurance funds (premiums) are earmarked to pay claims, is a source of investment funds that give rise to investments in money market and capital markets.
Service revenue (invisible earnings)
Insurance and reinsurance transactions occur in a wide range between countries.
A country that a lot of premium income received from other countries is income country concerned of trade in services.
In Indonesia, the opposite is true. Insurance companies in Indonesia that puts a lot of reinsurance abroad, so the balance of our trade deficit because it is the acceptance for payment of premiums abroad and spending for Indonesia.
The reason, among others:
lack of technology and knowledge
lack of integrity of the insurance business
Insurance companies in Indonesia to pay claims from the reinsurance overseas so that the function of the insurance company only as an agent / broker only.
minded consumers are still abroad (lack of nationalism), so selecting an insurance company abroad.
0 komentar:
Posting Komentar - Kembali ke Konten