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Chapter 01 - Structure of The Insurance Industry
Chapter 01 - Structure of The Insurance Industry
Chapter 01 - Structure of The Insurance Industry
SL/DIP/IBF
Insurance Business Management and
Finance Aspects
Chapter 01
Structure of the Insurance Industry
M Tharaka Perera
ACII, FIII, MBA- Finance
No. 93 Hunupitiya Lake Road, Colombo 02, Tel No.: 011 245 1426, 011 243 2050, 011 242 1404 , E-mail: slii@sltnet.lk Web: www.slii.lk
Sri Lanka Insurance Institute
No. 93 Hunupitiya Lake Road, Colombo 02, Tel No.: 011 245 1426, 011 243 2050, 011 242 1404 , E-mail: slii@sltnet.lk Web: www.slii.lk
Sri Lanka Insurance Institute
No. 93 Hunupitiya Lake Road, Colombo 02, Tel No.: 011 245 1426, 011 243 2050, 011 242 1404 , E-mail: slii@sltnet.lk Web: www.slii.lk
Sri Lanka Insurance Institute
With the advancement of the technology, the world has become more
international, expansion and globalization issues have become more
important.
Multinational: Operates in different countries but have a home base.
Eg: Prudential PLC.
Global:- Company sees the whole world as one potential Market. Eg: Lloyd’s
The London Market:
Comprises of reinsurers, Lloyd’s and brokers
Leading global market for Aviation and Marine.
1/3rd of the total insurance written in GB.
No. 93 Hunupitiya Lake Road, Colombo 02, Tel No.: 011 245 1426, 011 243 2050, 011 242 1404 , E-mail: slii@sltnet.lk Web: www.slii.lk
Sri Lanka Insurance Institute
No. 93 Hunupitiya Lake Road, Colombo 02, Tel No.: 011 245 1426, 011 243 2050, 011 242 1404 , E-mail: slii@sltnet.lk Web: www.slii.lk
Sri Lanka Insurance Institute
No. 93 Hunupitiya Lake Road, Colombo 02, Tel No.: 011 245 1426, 011 243 2050, 011 242 1404 , E-mail: slii@sltnet.lk Web: www.slii.lk
Sri Lanka Insurance Institute
No. 93 Hunupitiya Lake Road, Colombo 02, Tel No.: 011 245 1426, 011 243 2050, 011 242 1404 , E-mail: slii@sltnet.lk Web: www.slii.lk
Sri Lanka Insurance Institute
No. 93 Hunupitiya Lake Road, Colombo 02, Tel No.: 011 245 1426, 011 243 2050, 011 242 1404 , E-mail: slii@sltnet.lk Web: www.slii.lk
Sri Lanka Insurance Institute
11
No. 93 Hunupitiya Lake Road, Colombo 02, Tel No.: 011 245 1426, 011 243 2050, 011 242 1404 , E-mail: slii@sltnet.lk Web: www.slii.lk
Sri Lanka Insurance Institute
E1 Stakeholders?
They are the people or group of people who have an interest in the way a company
act. They are mainly:
Customers,
Shareholders,
The government
Regulators,
The public,
Employees.
D2 Stakeholder Management.
Stakeholder demands are conflicting but the company has the responsibility for
satisfying all. Company need to identify:
Composition and significance of each group;
Power that each group exert;
Their legitimate claims on the company;
Extent to which the organization is satisfying claims;
Overall mission of the organization.
No. 93 Hunupitiya Lake Road, Colombo 02, Tel No.: 011 245 1426, 011 243 2050, 011 242 1404 , E-mail: slii@sltnet.lk Web: www.slii.lk
Sri Lanka Insurance Institute
No. 93 Hunupitiya Lake Road, Colombo 02, Tel No.: 011 245 1426, 011 243 2050, 011 242 1404 , E-mail: slii@sltnet.lk Web: www.slii.lk
Sri Lanka Insurance Institute
No. 93 Hunupitiya Lake Road, Colombo 02, Tel No.: 011 245 1426, 011 243 2050, 011 242 1404 , E-mail: slii@sltnet.lk Web: www.slii.lk
Sri Lanka Insurance Institute
G Outsourcing
Outsourcing?
Is the use of skilled resources outside the company to handle work that was
previously performed by in-house staff. E.g. Loss Adjusting.
Advantages of outsourcing:
Use of external specialist, which never being there before, at correct
cost
Service level agreement
Easy to budget
Bringing in more qualities/ new business processes.
High level of service with new products
More time to focus on core areas of the business
Disadvantages of outsourcing:
Certain controls and directions will be lost.
Confidential information/ data.
Uniqueness will be lost.
Internal problems of the outsourced company.
Communication problems.
No. 93 Hunupitiya Lake Road, Colombo 02, Tel No.: 011 245 1426, 011 243 2050, 011 242 1404 , E-mail: slii@sltnet.lk Web: www.slii.lk