Insurance organizations: definition, structure

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Does a person often think about what awaits him in later life? What will happen to his he alth and property? After all, there are risks from which no one is immune. This is exactly what insurance organizations take care of, whose main activity is aimed at protecting human values.

What are insurance entities

Insurance organizations are various types of independent business entities that operate in the national economic system.

They are represented by:

• Institutions (OS).
• By Enterprises (JV).
• Companies (JV).
• Joint Stock Companies (JSC).
• Financial groups at the regional level.
• International Finance Groups.
• Companies representing Russian-foreign relations and other partnerships, private firms and state-owned companies.

The legislation of the Russian Federation stipulates that insurance organizations areseparate structures of public legal forms.

Type of activity of insurance companies

On the territory of the Russian Federation they carry out the following activities:

• conclude insurance contracts;
• form funds and reserves in which funds for insurance are formed;
• are engaged in investing temporarily free finances in objects that make a profit;
• invest in securities and bonds;
• are engaged in lending to some areas of human activity;
• other functions.

Insurance organizations operate separately from the general state system. Therefore, they are recognized as independent entities and dispose of their resources and working capital at their discretion.

Relations with other insurers are built on the basis of reinsurance or co-insurance. Thanks to this, the object (natural or legal person) of insurance can be insured with several insurers at once on the basis of an agreement.

Insurance company staff

Regardless of the form of ownership, insurance organizations in today's market decide themselves on what labor relations their activities will be based. They independently approve their organizational structure and wages.

The specifics of their work forces them to use the labor of two categories of employees:

• full-time specialists with the necessarywork experience and qualifications that are engaged in management, economic and consulting activities;
• freelancers in charge of collecting and disbursing funds.

In more detail among full-time employees are:

• President of the insurance entity;
• Economist (Chief Economist or Vice President);
• CEO;
• manager (executive director);
• accounting department employees;
• chief specialists with cool ranks of the first, second and third class;
• insurance experts;
• heads of departments and their employees;
• inspectors;
• computer center workers;
• service personnel.

Their activities are aimed at maintaining the authority of insurance institutions in general. Their main goal is aimed at the stable solvency of the company, maintaining it at a high level among competitors, as well as increasing its profitability.

Freelancers include brokers, medical examiners, insurance agents and others.

What freelancers do in the company

Insurance companies refer to organizations whose activities are aimed at the following:

• freelancers are engaged in propaganda and agitation of their company among various activities of organizations, as well as the population to attract them to insurance;
• theyconclude or renew contracts for insurance of property, life, he alth and other points;
• control the timely payment of insurance premiums, as well as payments from the insurance company itself in the event of an insured event.

It can be said that the activity of employees outside the state is aimed at promoting services from the insured to the insurer and vice versa.

Division of the UK into organizational structures

Insurance organizations belong to the category of organizations, which are divided into two structures:

• on management or management;
• by field of activity.

How are these structures different?

Organizational structure for management

It has become more widespread. Its principles are as follows:

• all production issues are not resolved unilaterally;
• employees of the company not only directly report to the authorities and carry out all orders, but also develop their action plans to solve the tasks;
• bosses are not responsible for the mistakes of their subordinates, only if a certain problem occurred from the actions not taken from above.

The organizational structure is designed in such a way that each employee at his level is responsible for his mistakes. Each level has its own principles of work and decisions, but the order that the boss can take, the lowest level in the career ladder cannot accept.

Organizational structure by areas of activity

Its peculiarity lies in the fact that job duties are assigned to employees not according to their abilities, but according to the nature of the structure of the organization.

The following features of this structure stand out:

• at each level there are specialists who have a higher level of knowledge and ability than is required for the position they occupy;
• along with them are specialists whose knowledge is not enough for their position.

This includes mutual insurance companies and joint-stock insurance companies.

State insurance

Insurance organizations are categorized as a public system in two cases:

• if they are established by the state;
• if the property of the joint-stock insurance company was transferred to state ownership.

Usually these organizations are engaged in the types of insurance that private insurance companies have refused, but the coverage of these risks is of national importance.

How insurance companies feel about the banking system

In the course of their activities, banks often use the services of insurance companies, because their activities are also associated with the risk of property losses.

Banks insure tangible assets and funds of both the financial and credit organization itself and depositors.

Risk insurance hereis aimed at protecting against illegal actions of personnel or third parties that can lead to losses.

The bank acts as the insured, and the licensed companies act as insurers.

Deposit insurance is especially popular. It is an important link in the entire banking insurance system. Thus, banks protect themselves from the claims of depositors when they lose their money.

Also, banks pay special attention to lending. Currently, the problem with non-payers under these contracts is under the jurisdiction of insurance companies.

Financial and credit organizations actively insure their equipment and are protected by insurance regarding the use of plastic bank cards.