Chp theo slide

Wd8042

Chp theo slide

Wd8042

Chapter 1: Overview of insurance...........................................................................................3

1.1.Risk and insurance.........................................................................................................3
1.1.1.Concept of risk........................................................................................................3
* Definition of risk.....................................................................................................3
* 2 elements of risk....................................................................................................3
* The types of risk (4 methods to classify risk)........................................................3
1.1.2.Concept of risk management..................................................................................3
* The process of risk management: 3 steps...............................................................3
* The methods to treat the risk..................................................................................3
1.1.3.Concept of insurance...............................................................................................4
* Definition of insurance ......................................................................................4
1.1.4.Insurance contracts..................................................................................................4
1.2.Principles of insurance (nguyn tc)..............................................................................4
1.3.Insurance market............................................................................................................4
1.3.1.The buyers of insurance..........................................................................................4
1.3.2.The intermediaries (trung gian)..............................................................................4
1.3.3.The sellers...............................................................................................................5
1.3.4.Other insurance related professions and bodies.....................................................5
Chapter 2: General insurance...................................................................................................5
2.1.Overview of general insurance......................................................................................5
2.1.1.Concept of general insurance..................................................................................5
2.1.2.General insurance devision (Cc nghip v BHPNT)...........................................5
2.2.Commercial general insurance.......................................................................................5
2.2.1.Marine insurance (BH hng hi).............................................................................5
2.2.2.Oil and gas insurance (BH ga du).........................................................................6
2.2.3.Non-marine general insurance (BHPNT ngoi BH hng hi)...............................6
* Property insurance (BH ti sn)..............................................................................6
* Business interruption insurance (BH gin on kd)..............................................6
* Motor vehicle insurance (Automobile or motor insurance)...................................6
* Construction and Erection insurances (BH xy dng v lp t)..........................6
* Liability insurance..................................................................................................7
* Aviation insurance (BH hng khng).....................................................................7
2.3.Personal general insurance (BH con ngi PNT).........................................................7
Chapter 3: Life insurance.........................................................................................................7
3.1.Definition oflifeinsurance..............................................................................................7
3.2.The basic types of life insurance....................................................................................7
3.2.1.Term\Temporary term insurance (BH t vong c thi hn)..................................7
3.2.2.Whole life insurance (BH trn i) .......................................................................8
3.2.3.Pure endowment insurance (BH sinh k thun ty)...............................................8
3.2.4.Annuities insurance (BH nin kim hoc tr cp)...................................................8
3.2.5.Endowment insurance (BH hn hp hoc sinh k)................................................8
3.2.6.Other types of life insurance polocies....................................................................8
Chapter 4: Reinsurance............................................................................................................8

Chp theo slide

Wd8042
4.1.Overview........................................................................................................................8
4.1.1.Concept....................................................................................................................8
* The definition stresses 2 important facts..................................................................8
* The nature of insurance.............................................................................................9
* Particular elements of reinsurance............................................................................9
* Other definition.........................................................................................................9
* Other concept............................................................................................................9

Chapter 1: Overview of insurance

1.1.Risk and insurance
1.1.1.Concept of risk
* Definition of risk
Risk is the probability of something happening that will have an unfavorable (bt
li) outcome (hu qu) or an unpredictable (khng mong i) result.

* 2 elements of risk
- The likelihood (kh nng) of something happening (xy ra s c) is uncertain
(khng chc chn)
- The consequence (hu qu) if it happen is not favorable (mong i)

* The types of risk (4 methods to classify risk)

- Speculative/Dynamic risk (ri ro u c)
Pure/Static risk (ri ro thun ty)
- Particular risk (ri ro ring bit)
Fundamental risk (ri ro c bn)
- Financial risk
Non financial risk
- Insurable risk
Non insurable risk

1.1.2.Concept of risk management

* The process of risk management: 3 steps
- Identify risks or identify of the risks
- Evaluate the risks
- Decide treatment to the risks

* The methods to treat the risk

- Avoidance (trnh n ri ro)

Chp theo slide

Wd8042
- Control (kim sot ri ro)
- Retention (chp nhn)
- Transfer
+ Non insurance transfer of risk (chuyn giao ri ro khng s dng BH)
+ Insurance

1.1.3.Concept of insurance
* Definition of insurance
Insurance is a contract between to parties whereby one party (insurer) agrees to
undertake the risks of another (insured) in exchange for consideration known as premium
and promises to pay a fixed sum of money to the other party on the happening of uncertain
event or after the expiry of a certain period in case of life insurance or to indemnify other
parties on the happening of an uncertain event in case of general insurance

* Benefits of insurance (li ch)

- Provide financial stability (m bo n nh v mt ti chnh)
- Taking peace of mind (mang li s an tm)
- Stimulate business enterprise (kch thch hot ng kinh doanh)
- Encourages loss control (tng cng phng trnh ri ro)
- Encourages investment (tng cng u t)

1.1.4.Insurance contracts
- The decleration page (bn k khai thng tin)
- Policy wording (HBH tm tt)
- The insuring agreement or general insurance or conditions & exclusion (iu
khon chung)
- Extensions & modifications (iu khon b sung)

1.2.Principles of insurance (nguyn tc)

* Insurable interest (quyn li c th c BH)
* Utmost good faith (trung thc, tin tng)
* Indemnify (bi thng)
* Subrogation (th quyn)
* Contribution (ng gp bi thng hay chia s trch nhim trong trng hp BH trng)

1.3.Insurance market
1.3.1.The buyers of insurance
- Individuals
- Commercial enterprises
- Government

1.3.2.The intermediaries (trung gian)

- Insurance agents (i l BH)
- Insurance brokers (mi gii BH)

Chp theo slide

Wd8042

1.3.3.The sellers
- Direct insurers (ngi Bh trc tip)
- Reinsurers (DN ti BH)
- Protection and indemnify clubs (t chc bo tr v bi thng)
- Co operatives (hp tc x) or Mutual (c phn) insurance companies (cng ty
BH tng h)

1.3.4.Other insurance related professions and bodies

- Actuaries (chuyn gia, chuyn vin tnh ph)
- Loss adjusters (chuyn vin tnh ton tn tht)

Chapter 2: General insurance

2.1.Overview of general insurance
2.1.1.Concept of general insurance
General insurance comprises any insurance that is not determind to be life
insurance

2.1.2.General insurance devision (Cc nghip v BHPNT)

* In USA
- Property insurance (BH ti sn)
- Casualty insurance (BH trch nhim)
* In UK
- Personal lines (Cc nghip v BH c nhn)
- Commercial lines (Cc nghip v BH thng mi)
- London market
* In many DIM development insurance market
- Commercial general insurance
- Personal general insurance

2.2.Commercial general insurance

2.2.1.Marine insurance (BH hng hi)
* Several specific types of losses (nhng tn tht ring bit)
- Total los (tn tht ton b)
- Particular average ( (tn tht ring, tn tht b phn)
- General average (tn tht chung)
* Types of marine property insurance
- Cargo insurance (BH hng ha)
- Hull and machinery insurance (BH thn v my mc thit b tu)

Chp theo slide

Wd8042
- Loss of income (BH tn tht thu nhp)
* Types of marine liability insurance (Cc loi trch nhim)
- Collision liability nurance (trch nhim BH m va)
- Protection and indemnity nurance (trch nhim BH ca hi)
- Other liability insurances (trch nhim BH khc)

2.2.2.Oil and gas insurance (BH ga du)

- Property damage insurance (BH thit hi ti sn)
- Hull and carro insurance (BH tu v hng ha ch trn tu)
- Liability insurance (BH trch nhim)

2.2.3.Non-marine general insurance (BHPNT ngoi BH hng

hi)
* Property insurance (BH ti sn)
- Fire and special peril policy (BH ha hon v cc trng hp c bit)
- Industrial all risks policy (BH mi ri ro cng nghip)
- Home insurance (BH nh)

* Business interruption insurance (BH gin on kd)

- Tradition gross profit wordings (n BH li nhun gp truyn thng)
- Gross revenue of fees wordings (n BH thu nhp gp hoc ph)
- Gross rentals wordings (n BH cho thu)

* Motor vehicle insurance (Automobile or motor insurance)

BH xe c gii
- Motor vehicle physical damage insurance
BH thit hi vt cht xe c gii
- Motor vehicle owners third party liability insurance (liability to third party)
BH trch nhim ca ch xe c gii vi ngi th 3
- Motor vehicle owners civil liability to the passenger
BH trch nhim dn s ca ch xe c gii i vi hnh khch
- Motor vehicle owners civil liability to good in transit
BH trch nhim dn s ca ch xe i vi hng ha vn chuyn
- Personal accident of driver, assistant driver and passenger (Applied to nonpassenger service car)
BH li, ph xe v hnh khch trn xe, p dng vi xe khng vn chuyn hnh
khch

* Construction and Erection insurances (BH xy dng v lp

t)
- Construction all risks insurance (BH mi ri ro xd)
- Erection all risks insurance (BH mi ri ro lp t)

Chp theo slide

Wd8042

* Liability insurance
- General liability insurance (BH trch nhim tng hp)
- Directors and Officers liability insurance (BH trch nhim cho nhng ngi ch
cht)
- Employer liability insurance (BH trch nhim ca ngi ch sd vi ngi l)
- Professional liability insurance (BH trch nhim ngh nghip)
- Public liability insurance (BH trch nhim chung)
- Product liability insurance (BH trch nhim sn phm)

* Aviation insurance (BH hng khng)

- Hull all risks (BH mi ri ro cho thn my bay)
- Spares insurance (BH thit b ph tng thay th)
- Hull war risks (BH mi ri ro chin tranh cho thn my bay)
- Hull total loss only cover (BH tn tht ton b thn tu)
- Liability insurance
+ Liability insurance respect of passenger, baggage, cargo, mail carried on the
aircraft (
+ Aircraft third party liability (BH trch nhim dn s vi ngi th ba)

2.3.Personal general insurance (BH con ngi PNT)

- Personal accident insurance (Bh tai nn c nhn)
- Medical and health insurance (BH chi ph y t v sc khe)
- Worker compensation insurance (BH gim mt thu nhp cho ngi l)
- Consumer credit insurance (BH tn dng tiu dng)

Chapter 3: Life insurance

3.1.Definition oflifeinsurance
Life insurance is a contrast between the policy owner and the insurer, where the
insurer agrees to pay a sum of money upon the occurrence of the insured individuals or
individuls death or other event, such as terminal illness (bnh giai on cui) or critical
illness (bnh him ngho), and in return the policy owner (ch hp ng) agrees to pay a
stipulated amount of premium at regulary (khong thi gian nh nhau) intervals (u n)
or in lump sum (ph tr 1 ln)

3.2.The basic types of life insurance

3.2.1.Term\Temporary term insurance (BH t vong c thi
hn)
- Level tm insurance (BH t k c nh tc STBH khng i)
- Renewed term insurance (BH t k c th ti tc)
- Convertible term insurance (BH t k c th chuyn i)
- Decreasing term insurance (BH t k gim dn)

Chp theo slide

Wd8042
- Increasing term insurance (BH t k tng dn)

3.2.2.Whole life insurance (BH trn i)

- Non profit whole life insurance (BH trn i khng chia li)
- With profit whole life insurance (BH trn i c chia li)

3.2.3.Pure endowment insurance (BH sinh k thun ty)

3.2.4.Annuities insurance (BH nin kim hoc tr cp)
- Immediate annuity (Nin kim tr ngay)
- Deferred annuity (Nin kim tr sau)
- Temporary annuity (Nin kim tm thi)
- Guaranteed annuity (Nin kim m bo)
- Increasing annuity (Nin kim tng dn)

3.2.5.Endowment insurance (BH hn hp hoc sinh k)

- Non profit endowment
- With profit endowment

3.2.6.Other types of life insurance polocies

- Unit linking (BH lin kt n v)
- Investment linked insurance (BH klieen kt u t)
- Universal life policies (BH ph cp hoc lin kt chung)
- Contigent policies (n BH c iu kin)
- Bolt - on policies (Cc n BH b sung)

Chapter 4: Reinsurance
4.1.Overview
4.1.1.Concept
Reinsurance is an arrangement in which a company, the reinsurer (ngi nhn ti),
agrees to indemnify an insurance company, the ceding company (cng ty nhng ti),
against all or a portion of the primary insurance risks underwritten by the ceding company
under one or more insurance contracts
Reinsurance is the insurance of the risk assumred by the insurer

* The definition stresses 2 important facts

- There is a new contract the reinsurance contract which does not modify (sa
i) the insurance contract in anyway
- The reinsurance contract does not establish any kind of legal link between the
insured and the reinsurer for this reason, the insured can take no legal action against the
reinsurer

Chp theo slide

Wd8042

* The nature of insurance

Reinsurance is always a contract of indemnity, even in life and accident insurance,
because it protect the insurer from diminution (s gim) of his property, caused by
insurance policy obligations (ngha v, trch nhim)

* Particular elements of reinsurance

- Reinsurance is a distinct and separate (ring bit) contract from the original
insurance and itself takes the form of a contract of insurance
- Reinsurance need not cover the insureds entire obligation under the original
contract of insurance, either in terms of the sums payable or in terms of the perils covered
- The insurance contract must cover the same risk as the original insurance
- The insurance contract and the reinsurance contract must exist at the same time
with the insurance contract proceding the reinsurance contract

* Other definition
- Ceding company (cedant, insured, reassured): the insurer which cedes all or part
of insurance risk written to another
- The reinsurer: the insurance company that accepts the transference
- Cession (phn nhng ti): the amount of insurance risk transferred to a new
reinsurer by a ceding company

* Other concept
- Retrocession (s nhng li): a insurance transaction (s giao dch) whereby a
reinsurer the retrocedent cedes all or part of insurance risk to another reinsurer
retrocessionaire
- Retrocessionaire: the reinsurer of reinsurance company
- Retrcedent: a insurance company that buys reinsurance
A -> B -> C => B: retrocedent; C: retrocessionaire
- Retentionans (deductible, franchise, ceding companys net liability, retained line):
is the part of the risk that is not ceded and is kept for own account of the insurer
- The retention: can be given either as a percentage or an amount of the sum insured
Ex: a company retains 30% of all sum insured in the plate glass branch, an amount
of 100.000 of particularly well constructed private house fire policies
- Priority: is the maximum part of the loss incurred which is covered by the insurer
- Profit commission (hoa hng theo li): is a contractually agreed commission (hoa
hng tha thun theo H) paid by the reinsurer to the insurer in poportion (t l) to
reinsurer profits in the given reinsurance business
- Commission: is a remuneration paid by the reinsurer to the insurer for insurers
costs related to the reinsurance business (H KD TBH)
4.2.Function of Reinsurance
- Risk transfer
- Income smoothing

Chp theo slide

Wd8042
- Reinsurer expertise
- Creating a manageable and profitable portfolio of insured risks
- Surplus relief and Managing cost of capital for an insurance company