Insurance and risk transfer

Insurance and risk transfer

1. Importance of insurance

   • Risk response
   • Risk financing (RF)
   • Indemnity against loss
   • Delay in obtaining settlement of claim

2. Different types

   • Conventional
   • Contractual
   • Captive
   • Pooling
   • Derivatives
   • Alternative RF
   • Single premium bonds

3. Types of insurance cover

   • Legal
     • Balance sheet/profit and loss protection
     • Compulsory
     • Public liability
   • Employees benefit/protection
     • Life and health
     • D&O insurance
   • Business Premises
     • Asset protection
     • Motor
     • Terroism

4. Purchase of insurance

   • 6Cs of buying insurance
     • Cost
     • Coverage
     • Capacity
     • Capabilities
     • Claims
     • Compliance

5. Captive insurance

   • Org not involved in insurance
   • Parent
   • domiciles
   • Lower premiums
   • access to reinsurance markets
   • Greater risk awareness
   • Greater cover
   • Tax benefits
   • Exposed to claims
   • allocate captial
   • losses on parents balance sheet
   • Non admittance in other territories
   • Admin cost, time & effort