25 August 2015

What is Insurance Underwriting? (General Insurance)

What is Insurance Underwriting?

Let’s take a look at the concept of underwriting.

“Underwriting is a core insurance function. It is a methodological approach to ensure that the insurance business is conducted on sound lines and that risks are evaluated for loss potential on both frequency and severity over a period of time.”

Underwriting is the process of:

  • Determining the level of risk presented by a proposer
  • Deciding whether to accept the proposal
  • Deciding the terms and price of the accepted proposal

Each underwriting decision involves balancing the insurer’s desire to earn premium often in competitive conditions with margins required to pay claims and expenses and also to ensure compliance with regulatory requirements. Underwriting is essential in all forms of insurance. For example, an automobile insurer will charge higher rates to young drivers, old models of vehicles, or may refuse coverage to drivers with a history of accidents. The underwriter may offer discounts for vehicles fitted with anti-theft devices. Fire insurers may inspect properties, offer reduced premiums for safety features such as sprinkler systems, and so on.

Understanding Risk Sharing

Understanding the concept of risk sharing or pooling will make it easier for you to understand the role of underwriting and risk classification in insurance.

All risks are not equal. For example, in the field of property and casualty insurance, wooden structures are at a greater risk of burning than stone structures. Therefore, a higher premium is required to insure a wooden structure. The same concept applies to life insurance. An individual with a serious illness such as cancer or diabetes is at a greater risk of premature death than an individual without the illness.

Since all risks are not equal, it would be inequitable to make all insured contribute the same amount. Thus, underwriting attempts to classify risks based upon their characteristics so that each insured in a specific class pays a premium in proportion to the risk involved.

The issue of fairness to the other participants is at the core of this risk classification (underwriting) process. When viewed from a perspective of fairness, proper risk classification becomes a central obligation of insurers to the policyholders who participate in their risk pools. This applies for all risks – life, assets or earnings.


Filed under: All About Insurance, Shashi Ki Pathshala

from: http://bit.ly/1fDOC8o
on: August 25, 2015 at 08:21PM

Definition of Combined Ratio for Insurance Business

“Combined Ratio’

A measure of profitability used by an insurance company to indicate how well it is performing in its daily operations.

The combined ratio is defined as

The sum of incurred losses and operating expenses measured as a percentage of earned premium.

The combined ratio is comprised of the claims ratio and the expense ratio.

The claims ratio is claims owed as a percentage of revenue earned from premiums.

The expense ratio is operating costs as a percentage of revenue earned from premiums.

The combined ratio is calculated by taking the sum of incurred losses and expenses and then dividing them by earned premium.

It is a measure of the profitability of the insurer. (The ratio is typically expressed as a percentage.)

The combined ratio shows the underwriting profitability of the insurer. A ratio below 100% indicates that the company is making underwriting profit while a ratio above 100% means that it is paying out more money in claims that it is receiving from premiums.

‘Combined Ratio Calculated as:

“Combined Ratio”= “Incurred Loses + Expanses” /”Earned Premium”

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Filed under: All About Insurance, Shashi Ki Pathshala Tagged: Insurance

from: http://bit.ly/1EfsUmW
on: August 25, 2015 at 12:39PM

15 August 2015

What Azadi Mean To Me! 15 August 2015

आज़ादी! हमारे हौसलो की पतंग में लगी उस डोर की भांति है जो हमें संभावनाओं के उन्मुक्त गगन में और ऊँचा उठने को प्रेरित करती है और साथ-साथ हमें  थामे भी रखती है ताकि हम उपने कर्तव्यपथ से विमुख न हो सके।

सुबह की पहली किरण जब ख्वाबो को झंकृत कर तन मन को आंदोलित कर देती है और दि

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ल  हजारो ख़्वाहिशों को पूरा करने के लिए खुद को स्वतंत्र पाती  आज़ादी वो अहसास हैं।

वो आज़ादी हीं तो है जो हमें हँसने में,
रोने में, खोने में, पाने में, पंछियों के चहचहाने में, नींदों को खुलने पर, दिलो को धड़कने पर, अपनों का साथ होने पर, दुःख में सुख में सफलता पर इतराने में, असफलता पर दृढ निश्चय कर फिर से उठ जाने में और ज़िन्दा होने में  हमे संप्रभुता की अहसास कराती है।

आज़ादी वो खूबसूरत अहसास है जो हमें इस अतुल्य भारत को और सुशोभित करने की शक्ति और अदम्य साहस देती है । ये आज़ादी ही तो है जो भाँति-भाँति की असंख्य जनसमूह को एक माला में पिरोये रखती है। ये आजादी ही तो है जो हमें आज अपनी सोच को अपनी मातृभाषा में सब तक पहुचाने की छूट देती है। आज़ादी है तो हम है और हम भारत माँ की ही भाँति अतुल्य है। 

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Posted from WordPress for Android By Shashi Kumar (Aansoo)


Filed under: Aha! Today Tagged: Aha! Today

from: http://bit.ly/1WpLH4T
on: August 15, 2015 at 12:55AM

12 August 2015

The One Who Changed The World

Here’s to the crazy ones, the misfits, the rebels, the troublemakers, the round pegs in the square holes — The ones who see things differently — they’re not fond of rules — you can quote them, disagree with them, glorify or vilify them, but the only thing you can’t do is ignore them because they change things — They push the human race forward, and while some may

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see them as the crazy ones, we see genius, because the ones who are crazy enough to think that they can change the world, are the ones who do.”
— Steve Jobs

Posted from WordPress for Android By Shashi Kumar (Aansoo)


Filed under: Get Up & Rise Tagged: Get Up & Rise

from: http://bit.ly/1IFatH1
on: August 12, 2015 at 06:54AM

Before You Speak… Think

It’s on 5 questions to ask yourself before speaking:

I thought these 5 questions serve as a great self-reminder to always share the most positive and inspiring comments with others. While it’s not possible to adhere to these 5 criteria all the time
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(especially if we’ve never given second thought to our words before), constantly asking ourselves these 5 questions will make it second nature over time.

Here are examples of how to apply each criteria in our daily life:

Is it true?

Make only comments that are true — true to what you feel, true to your beliefs, and true to what you know about the world. When everyone communicates in truth, it allows us to forge connections in openness and trust.

Is it helpful?

Always give the most helpful comments, especially when someone is asking for your opinion/advice. That’s because the person may heed what you say, and giving someone badly thought-out or random advice would lead the person on a wild goose chase, in turn wasting their time. “Helpful” here includes helping the person feel better, helping them gain clarity, helping them take action, and/or helping them reach a decision.Is it inspiring? There are 2 ways to trigger people into action — first by force (fear), second by power (love). The first is done through manipulation, coercion, negative triggers, and/or punishment. The second is done by inspiring people to their true potential and power. The inspirational way is the most powerful way as that’s when you help others discover their true power from within. Being “inspiring” doesn’t have to come from making big statements or promises — all you have to do is speak from your heart and speak with the intent to uplift others and the rest will take care of itself.

Is it necessary?

What is necessary is subjective. For me, necessary means something that I feel the person must hear, that will add value to the person’s life, and that will further the conversation. (It doesn’t include gossip, overt focus on formalities (rather than the connection), or tactless remarks.) When you focus on the necessary, conversations become more meaningful; people also appreciate what you have to say because they know there’s a reason behind everything you say.

Is it kind?

With every comment you make, online or off, strive to be kind. Don’t speak with the intent to hurt or wound; but rather, speak with the intent to connect and love.

So before you speak the next time…

remember, think!

As it may be a handful applying all 5 values at one go, I recommend applying them one day at a time. Apply each of the 5 values for the first 5 days of the week, then apply all 5 together on the 6th day. On the 7th day, review how you’ve done. The next week, rinse and repeat. In a matter of time, it’ll be second nature for you to “think” before you speak.

When all else fails, just remember — be kind. That usually takes care of the rest.


Filed under: Inspiring Shashi

from: http://bit.ly/1IFatqL
on: August 03, 2015 at 09:41PM

10 Lists to Keep If You Want to Be Successful feedly

The human mind is truly incredible, and we should all strive towards creating a tenacious memory we can rely on. Many lucrative professions or hobbies require such a trait—actors, musicians, artists and entertainers in general do countless drills, just so the required information can be embedded in the memory with certainty. Clearly numerous doors that lead to a successful future are unlocked if one has a great memory. Although beneficial, it is not an essential ingredient within the success formula—what you lack in memory can always be compensated with diligence.

Keeping track of crucial elements in your life through list-making is still an unrivaled tactic for counterbalancing feeble recollection. By utilizing constant reminders, we can have significantly greater organization, we won’t be under the impression we have forgotten something, and we will have a clear insight into which task has a stamp of immediacy attached to it. Here are ten suggested lists that warrant implementation, in order to track achievements and nurture ambition.

1. List of Goals

“What you get by achieving your goals is not as important as what you become by achieving your goals.”

—Zig Ziglar

Goals and ambition is what drives us and motivates us, but we need to ask ourselves what is it that we want in order to feel truly accomplished. Your list of goals should consists of all the items that you deem are necessary to truly respect yourself. It can be financial stability, a place you can call your own, starting your family, being independent, etc. People have different criteria when it comes to goals, and this list in particular is ever-growing; it changes as you mature, but it always feels great when you cross something out of it. Without such a list, you lose direction of where your life is heading, and we all need some inner guidance to focus on—a good reason to get up in the morning.

2. List of Tasks

“Happiness does not come from doing easy work but from the afterglow of satisfaction that comes after the achievement of a difficult task that demanded our best.”

—Theodore Isaac Rubin

Tasks are actually milestones on the road to goal completion, and these lists have a tendency to become quite copious. New tasks emerge on a daily basis, regardless of whether you are an employee, a student, or a freelancer. Despite the fact that they are arduous, we always have some sense of achievement once the task is complete, or when a certain problem is solved. By avoiding to make such lists and lists of our daily tasks, they’ll simply pile up and eventually become a hindrance.

In the event you have larger tasks that need more than a day, a week or a month before they can be completed, then break those tasks into smaller daily assignments, and put them on the list as well. As long as you monitor larger tasks while completing minor daily milestones, you will have a greater grip on progression and continuous source of motivation. List and sticky notes are actually quite potent tools for increase in productivity, especially while we are working from home.

Lastly, it is worth mentioning that you should also have a list of personal tasks, or tasks you do for the sake of self-fulfillment. These are related to your personal goals, and governing passions—writing a book, painting, crafting etc. These tasks will define you and offer a much greater sense of achievement, so give it your all to create something you can be proud of.

3. List of Contacts

“Wishing to be friends is quick work, but friendship is a slow ripening fruit.”

—Aristotle

It would be delusional to assume you can make it all on your own; however, at the same time, a flawed partnership can result in disastrous outcome as well. It is extremely difficult to find compatible allies and contacts, since friends and family—in other words, people close to you—may not be the best choice for a business partner. If you want to enter into a partnership with someone, make sure the person shares the same vision. Tread lightly and try to ascertain your potential partner’s level of reliability.

Throughout life, we come across skillful, capable and talented people, whose competence might be needed in the future, depending on your line of work of course. Do not be hesitant to offer a helping hand when they are in need, since you can gain a valuable contact. The point being: make a special list of all important contacts, like reliable programmers, handymen, lawyers, etc. Remember not to only reach out when you are in need. You need to maintain a healthy and natural relationship and be there for those people if they require your assistance. Truth be told, it can be arduous to forge strong friendship bonds, but having important acquaintances and becoming an important acquaintance is very much possible.

Without such a list, you are leaving yourself vulnerable to possible future complications; moreover, make sure this list is well-kept since once you lose a contact like this one, it can be somewhat troublesome to recover such data. Just be sure you have recovery data tools at your disposal to mitigate the damage if something were to happen to your phone.

4. List of Expenses

“A wise person should have money in their head, but not in their heart.”

—Jonathan Swift

This may be a quite mundane piece of advice, yet it is very often neglected. As we all know, there are two types of expenses: those that are necessary, (bills, taxes, food) and those expenditures used for indulging some personal cravings. There is a degree of restraint that the majority of us lack in order to approach the matter with a satisfying level of prudence. To say it bluntly, we treat our wants like our needs, and necessities and primary obligations are pushed in the background. Of course, this may sound a bit exaggerated, but the truth is the pressure of a consumer’s culture eventually becomes overwhelming, resulting in a purchase we shouldn’t be able to afford at the time. This kind of behavior can be avoided by utilizing lists, and turning them into an omnipresent reminder of what is truly important.

By making lists of all the monthly expenses we are obligated to pay, we’ll have a clear overview with how much resources are there at our disposal. On the other hand, without this list filled with meticulous calculations, we are prone to believing that we have more freedom to engage in a shopping spree, ultimately causing our bills to pile up; thus, we end up a step closer to a financial suicide. Handling finances properly, or the fact that we prioritize the costs of living, is a responsibility that signifies maturity. Success is commonly measured by the amount of wealth and without adequate spending tactics, you prevent its accumulation.

5. List of Useful Tools

“If you’re the type of person who has to fulfill your dreams, you’ve got to be resourceful to make sure you can do it.”

—Vin Diesel

Today’s society vastly depends on the use of technology—we exchange information, conduct calculations, measure time, etc. This level of reliability also suggests liability. If something were to happen to our cell phone or personal computer, it would be a sizable setback that could harm our capabilities severely. As mentioned, losing contacts can truly be troublesome. It is even worse however, to have your life’s work lost and compromised.

Useful tools are not only limited to recovering damage; they also encompass tools that make your job easier. With efficiency and a greater level of competence, you are a step closer toward success. Using the right apps and tools can make up for our lack of skills in a particular area, or simply help us manage our work in a more timely manner. Keeping a list of useful tools will come in handy whenever you are faced with more common problems, like finding a good restaurant for a business dinner, driving through unfamiliar terrain, task management, learning, and there are even tools capable of helping you recover stolen property.

Even though the list is not as crucial as the ones mentioned so far, it is undeniable that having it can save you a lot of time if the need for it ever arises. The Internet is a vast sea of both useful and useless tools, and by filtering out those that are irrelevant, you won’t have to conduct countless searches when you are in need of adequate tools for problem solving.

6. List of Self Improvements

“The minute that you’re not learning I believe you’re dead.”

—Jack Nicholson

Reasonable to assume this one is unavoidable, and it always deserves to be mentioned. It is safe to assume we are all aware of our shortcomings; if not all of them at least some of them. Think about yourself, make a list of all the things you would like to improve or change, then consider how to implement those changes. Despite the fact that those who are close to you do not pressure you into changing or improving, you should always make constant endeavours to do so, for your own sake.

The list of improvements should consist of physical changes, changes spiritual in nature, abandoning bad habits etc. No one expects you to change entirely in a short time period, but making a decision to change one thing on a yearly basis is a viable resolution, quite easy to execute. The list is there simply to remind you which improvement to prioritize, and build up your confidence after each completion. Refusing to change can either result in lack of confidence and depression, or becoming an overconfident and self-absorbed person that no one will tolerate for long; both of these traits are contradictory to your quest for a successful future.

7. List of Creative Ideas

“Do not go where the path may lead, go instead where there is no path and leave a trail.”

—Waldo Emerson

Throughout history, people who made the most significant impact on the world were those with a revolutionary way of thinking, those who dared to challenge the established order and alter the status quo. For an idea to be classified as creative, it needs to be new, it needs to make sense, and it needs to have some sort of use. For example, creating something to help the disabled communicate online, or simply type—that way, people who have lost their limbs could blog or become creative writers, and show the world a piece of their mind. Thus a keyboard in a form of braces could enable them to type using their tongue; however I am not an engineer, so I do not know whether something like this is possible.

Whenever a new idea comes to your mind write it down, then browse the web to see if you indeed have stumbled upon something ground-breaking. Once your list has grown, then you need to start pondering on the subject to see whether it holds closer scrutiny. Ask for a second opinion and see what you would need to realize your idea. In a majority of cases, this is how successful people are created. Rest assured that it is very possible that people won’t be impressed with your creativity as much as you are, but do not allow yourself to be discouraged—after all, perseverance has a crucial role in a career as well. Monitoring your thoughts incites productive thinking and hones your focus; it keeps our mind occupied. Letting your good ideas slide is only a wasted potential that will put your progress in a halt.

8. List of Future Plans

“The future is uncertain but the end is always near.”

―Jim Morrison

We have all heard statements like “Tomorrow is a mystery,” “Live for today,” and “You can’t affect the future.” Personally, I heavily disagree with such a point of view. Although I do agree that, in particular circumstances, making plans for the future is doing Sisyphus work, not planning it at all seems utterly mortifying. I also believe that everyone makes some sort of plan; the problem is this fear of uncertainty that thwarts our will to act.

To make your resolve more adamant, compile a list of your future plans, see what you need in order to make them come true. This one is very similar to the first list—the one with goals; the difference is, it does not have to involve your personal future. Rather, it is list of upcoming important events, important changes in law, or upcoming trends, useful software, etc. It will keep you well-informed and prepared, since staying updated and relevant are essential virtues for lucrative businessmen.

9. List of Contingency Plans

“You pray for rain, you gotta deal with the mud too. That’s a part of it.”

—Denzel Washington

Every action has an equal and opposite reaction, meaning there is nothing you can do without consequences. Every attempt to be more successful usually has a set of barriers attached to it, or risks. Even though risks are inevitable, being prepared for the aftermath is always a good and necessary thing. When you plan your business incentives, or when you plan to invest in something, make sure you compose a thorough pros and cons list, as well as a list of possible negative scenarios. In the event that positive aspects outweigh the negative ones, you can be more encouraged to proceed further.

Make an effort to be constantly prepared for the backlash of major initiatives, and contain the possible damage. The lack of contingency implies recklessness, and it was adamantly made clear how this approach contradicts advancement. Make leaps of faith only when you have no other options to explore.

10. Bucket List

“The bitterest tears shed over graves are for words left unsaid and for deeds left undone.”

—Harriet Beecher Stowe

Finally, learn to live for the sake of experiencing what life has to offer. It is invigorating, to say the least, and it keeps your regrets at minimum. One of the reasons why we want to be successful is to actually fulfil our dreams or complete our bucket list, to look back on our life during old age with a warm smile rather than a frown. Feel free to put even the impossible things on your bucket list, and find the next best thing using your creativity. Whenever you reach a rough patch in your life, take a look at you bucket list and see what is the most plausible thing to do in order to restore your will power and keep going.


Filed under: Inspiring Shashi

from: http://bit.ly/1IFatqH
on: August 01, 2015 at 05:22PM