Fundamentals of the Insurance Business

ISBN-13: 9783319528502 / Angielski / Twarda / 2024 / 762 str.

Massimiliano Maggioni; Giuseppe Turchetti

Opis

This textbook presents the fundamental economic dimensions of insurance companies and links them to managerial issues. Bringing together academic rigour and a strongly practice-oriented approach, it defines both the competitive environment and the technical management of the insurance business. Further, it provides a general overview of insurance firms and analyses specific dimensions. Filling an important gap in the market for textbooks on the insurance business, it is divided into four major parts, the first of which examines the fundamentals and distinctive traits of the insurance business. The second part switches the focus to technical management, while the third explores business models and operative models on the market. In closing, the fourth part details measurement and performance indicators.
The book offers a valuable resource for lower and upper undergraduate students; graduate students; professionals/practitioners working at insurance companies, insurance agents, brokers, bankers, and consultants.

Spis treści

Part I: Fundamentals of insurance business The origins and role of insurance in society.- The notion of risk and probability.- The insurance undertaking.- Regulation of the insurance industry.- Supervision and other Authorities.- The insurance business.- The insurance contract.- Life Insurance products.- Non-life insurance products. Personal line.- Non-life insurance products. Commercial Line.- Part II: Pricing, reserving and reinsurance Non-life insurance: pricing.- Non-life insurance: reserving.- Life insurance: pricing.- Life insurance: reserving.- Life insurance. How with-profits insurances work.- Life insurance: other components of profit.- Reinsurance and coinsurance.- Part III: Business models and processes in the insurance industry Business models for the insurance undertakings.- Competences and organisational functions.- Product development process.- Underwriting process.- Investment process.- Loss event management process.- Insurance marketing.- Insurance distribution.- Part IV: Performance and key indicators Financial statements of an insurance undertaking.- Introduction to IFRS and consolidated financial statements.- International accounting standards (IAS) and International Financial Reporting Standards (IFRS).- Solvency of an insurance undertaking.- Solvency II’s Capital Model.- Asset Liability Management (ALM).- Embedded Value.- Management control in insurance industry.- Performance indicators in the insurance business.- Business Plan for an insurance undertaking.

 

O autorze

Massimiliano Maggioni is a Professional Affiliate at the Scuola Superiore Sant'Anna, Pisa, Italy. Previously, as Head of Marketing for non-life/P&C products at BNP Paribas, he was responsible for non-life product development for the retail banking, financial intermediaries and corporate channel. Prior to this experience, he was a Senior Manager at Mazars Audit & Assurance, his duties including development of advisory services for business consulting addressed to the Italian financial market and work relating to Solvency II. His previous posts have included Senior Manager at KPMG Advisory, Head of Management Accounting for the Generali Assicurazioni Group, and Senior Consultant in Financial Services Strategy at Accenture. He has lectured on courses relating to insurance at the University of Genoa and the MIB School of Management in Trieste. He has authored more than 20 publications in scientific journals.

Giuseppe Turchetti is Professor of Management at Scuola Superiore Sant'Anna, Pisa, Italy. His main research interests include strategy and marketing in the insurance and healthcare industries; structure, organization, and financing of the insurance, healthcare, and long-term care systems; management of insurance and health care organizations; economics and management of innovation in the insurance and healthcare sectors; and behavioral economics in insurance and healthcare. He has been a member of, and often coordinated, competitive research projects funded by the Italian National Council of Research, Italian ministries, the European Commission, and the private sector. Professor Turchetti has been a Fulbright Research Scholar at the Kellogg School of Management – Northwestern University (Evanston-Chicago, USA). He is a Senior Fellow of The Research Institute of the Finnish Economy, Helsinki (ETLA) and Founder and Vice President of the Association of Marketing and Insurance Culture (AMCA). He has authored/edited 15 books and authored more than 200 publications on scientific journals.  

Blurb

This textbook presents the fundamental economic dimensions of insurance companies and links them to managerial issues. Combining academic rigour and a strongly practice-oriented approach, it addresses both the competitive environment and the management of the insurance business. Further, it provides a general overview of insurance undertakings and technical topics are explained in depth. Filling an important gap in the market for textbooks on the insurance business, it is divided into four parts and 35 chapters. Part I (chapters 1 to 10) describes the fundamentals of the business, how the industry works, the Authorities and the regulations. It presents the insurance products (for life, non-life retail, and non-life commercial lines). Part II (chapters 11 to 17) explains the pricing and reserving for life and non-life insurance. Reinsurance business is also illustrated. Part III (chapters 18 to 25) describes business models in the industry and the organizational structures. The main processes of an insurance company (product development, underwriting, claims settlement, investments) are presented. Marketing and distribution are also described. Part IV (chapters 26 to 35) defines the financial statement and introduces IFRS principles. Solvency II calculation, ALM model, and Embedded Value are explained in detail. This part also describes management accounting, performance indicators, and the Business Plan in the insurance industry. The book offers a valuable resource for lower and upper undergraduate students, graduate students, professionals/practitioners working at insurance companies, insurance agents, brokers, bankers, and consultants.