The subjects of the insurance business are The concept, activities of subjects, rights and obligations

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

The insurance market is represented by insurance companies, their clients, agents and brokers, beneficiaries and insured persons. However, you should be aware that not all of its participants are subjects of the insurance business. After all, many other specialists are involved in such a specific market, with whom clients of insurance organizations do not encounter at all or learn about their profession only upon the occurrence of an event specified in the contract. Who is a participant in the insurance market, and who is the subject of the insurance business - should be sorted out.

Participants in the insurance business

The financial market covers all spheres of life as a simple man in the street, as well as organizations, institutions, industrial enterprises. Insurance is part of the non-banking area of the country's economy and is actively used by the state as a means of accumulating cash reserves and the ability to reduce losses from unforeseen situations and cataclysms. Taking into account the provisions of the current legislation, financial services are provided by insurance companies andinsurance companies in accordance with the licenses obtained.

Ordinary citizens, private entrepreneurs, industrial enterprises, public organizations, companies of various types of property use the services of insurers. They conclude insurance contracts on voluntary and obligatory types. During the conclusion of agreements, clients act as policyholders, as well as insured persons. Often, personal and property insurance contracts indicate beneficiaries who have the legal right to receive insurance compensation in the event of unforeseen events.

Insurance agents and insurance brokers, actuaries and accident commissioners are also part of the insurance market. They are looking for potential customers for insurance companies and sell policies. Also, state regulatory bodies, various associations of insurers, brokers should be included in the insurance market.

Insurance Subjects

It should be understood that not all participants in the insurance market are its subjects. Therefore, for a clear distinction, it is necessary to focus on the current legislation regarding this area of economic activity.

Based on its norms, the subjects of the insurance business in the Russian Federation are directly insurers, agents and insurance brokers, emergency commissioners and actuaries. All other parties that take part in insurance contracts or exercise control over the insurance process are legally classified as participantsinsurance business. Thus, the subjects of the insurance business are participants for whom insurance is the main economic activity.

Insurance organization

The key subjects of the insurance business are financial companies that are professionally engaged in the provision of insurance protection in accordance with agreements concluded with clients. They are the basis for the full functioning and further development of this sector of the economy.

An insurance company must be registered as a legal entity. The insurance organization provides services on the basis of the obtained permits. The activities of such financial companies are regulated by their charter and legislative documents. The insurer can offer clients protection contracts in case of unforeseen situations that are specified in the issued document.

Insurance companies take responsibility for the property of policyholders, their responsibility for causing possible losses during the operation of transport or transportation of dangerous goods, life and he alth in the event of accidents.

Mutual insurance companies

It is not true in advance that the subjects of the insurance business are insurance companies, which are represented as legal entities operating on the basis of obtained licenses, and only they are. The definition of "subject" also includes mutual insurance companies, which legally have a different organizational form. Such societies are created by individuals and commercial organizations. They invest joint financial resources and thus protect the property interests of the members of such a society.

The organizations represented are essentially non-profit companies. They are not created for profit. The main purpose of such enterprises is to provide financial support to the participants of the specified mutual insurance company in the event of an insured event.

Insurance agents - individuals

Subjects of the insurance business are insurance brokers, actuaries, agents, emergency commissioners, average adjusters. Thus, in addition to the direct insurer, these are persons who provide their services in the insurance industry of the financial market.

Insurance agents are intermediaries between a financial institution and a client. Taking into account the requirements of the legislation, the agent may be an individual who has a permanent place of residence and has entered into a contractual relationship with the insurer. Based on the provisions of the concluded contract, the insurance agent represents the interests of the insurance company by selling its products. In addition to direct sales, insurance agents transfer cash insurance payments to banking institutions, draw up reports on concluded contracts, and advise the client on all insurance issues.

Insurance agents can work both for a specific insurance organization and conclude an agreement with an insurance general agent (GA). Subjectsinsurance business are also such forms of organization of the work of insurance agents. They select subagents who can work simultaneously for several insurance companies.

Insurance agents - legal entities

In addition to individuals, legal entities can also act as insurance agents. Thus, many travel companies, carriers, banking and non-banking institutions enter into contracts with insurance companies to sell their products. Travel companies are interested in obtaining medical insurance for traveling abroad and the Green Card. Carriers prefer cargo insurance and freight forwarders' liability for the delivery of goods. Banks, pawnshops, credit unions, when issuing loans, draw up property insurance contracts against the security or life of the recipient of the loan.

Insurance broker

Subjects of the insurance business are insurance brokers. Their activity is similar to the work of insurance agents. At the same time, there are a number of significant differences. An agent works for an insurance company and serves customers by taking insurance payments. A broker cannot work for clients and an insurance company at the same time. The insurance broker, on behalf of the insurance company, looks for clients and ensures the conclusion of the contract. Or he, on behalf of the client, is looking for an insurance company that will satisfy the client's requirements for insurance protection. Thus, the insurance broker acts as a link between the insured and the insurer.

In order to control the activities of insurance companiesA unified register of brokers has been created, and mandatory licensing of brokerage activities is being carried out. He has no right to engage in any other business activity, except for the provision of insurance services.

Insurance actuaries

Subjects of the insurance business are actuaries. These are qualified specialists who make calculations of economically justified insurance rates for all types of insurance. Also, insurance actuaries analyze the availability and completeness of the reserves of the insurance company. Taking into account the need for competent management of insurance risks, insurance actuaries make economic forecasts on the investment attractiveness of the insurance portfolio of the insurer.

Such calculations can only be carried out by an individual who has an appropriate economic education. Insurance actuaries perform their work while being with an insurance company either in an employment relationship or cooperating on the terms of a civil law agreement.

Actuarial calculations are based on economic, statistical and mathematical data. Properly executed calculations reflect the real picture of the company's insurance reserves or are the basis for developing a tariff policy for the developed types of insurance.

Underwriter

Along with actuaries who make calculations for new insurance programs, there are insurance specialists who analyze concluded contractsinsurance, as well as present their conclusions on the possibility of concluding one or another insurance contract. Underwriters are also subjects of the insurance business. In the course of their activities, these specialists evaluate the objects that they offer to take under insurance protection. Before concluding an insurance contract, the underwriter checks the availability of official documents confirming the right of ownership or use of the object. If the client requires individual insurance conditions, a professional employee of the insurance company will calculate the possible unprofitability of such an agreement and present the calculated rate.

Emergency Commissioner

Specialists who calculate the amount of losses received also belong to the category of persons providing insurance services. Therefore, the subjects of the insurance business are emergency commissioners. Based on the norms of the current insurance legislation, both an individual and a legal entity can act as an emergency commissioner. Such a specialist must have a higher education, as well as a diploma of vocational training in a specialized program.

The accident commissioner deals with the settlement of payments of insurance compensation, starting with the acceptance of an application from the injured insured and ending with the execution of an insurance act with its transfer to the accounting department for payment. In the process of processing documents for payments, the emergency commissioner clarifies all the circumstances of the insured event, draws up requests to the relevant organizations to confirm the fact of the event, determines the amount of damage received, makesinsurance compensation calculations.

Dispasher (adjuster)

The work of the emergency commissioner occurs mainly with property insurance or hull insurance contracts. To determine losses on insured events in marine insurance, adjusters are involved, who are also subjects of the insurance business. In accordance with the approved rules of maritime transportation, upon the occurrence of an insured event, the adjuster draws up average settlements for the declared losses. He studies the circumstances of the occurrence of the insured risk, studies the concluded insurance contracts and draws up conclusions in the form of an expert opinion.

All listed subjects of the insurance business are part of the single insurance market. Therefore, it is not true that the subjects of the insurance business are the insurance participants indicated above, and only they. After all, every year the diversity of insurance risks increases, and we should expect changes to existing laws and an increase in the number of subjects of the insurance business.