"Santander UK Plc has been fined £12,377,800 by the Financial Conduct Authority (FCA) after the regulator uncovered serious failings in the way it offered financial advice from its bank." Published:- 26/03/2014
Source: fca.org.uk
Thursday, 7 January 2016
[Misconduct] AXA Fined For Advice Failings In Investment Sales
"The Financial Conduct Authority (FCA) has fined AXA Wealth Services Ltd (AXA) £1,802,200 for failing to ensure it gave suitable investment advice to its customers." Published:- 13/09/2013
Source: fca.org.uk
Source: fca.org.uk
Guide to Commercial Insurance Pricing - Part 3 - Adding Value & Modelling
EFFECTS OF RELYING ON NON-ANALYTICAL AND HISTORICAL DATA ON RISK SELECTION AND PRICING OF COMMERCIAL INS.
2. Insurers tend to focus selecting policies with lower risk exposure regardless of the market price which may be unprofitable in the long run.
3. Insurers may focus on writing high hazard risks for the high premium charged. Due to the typical low frequency and high severity claims for a typical Corporate portfolio, the high hazard risks can make super profits for a number of years but are susceptible to large losses which can result in a significant loss larger than all of the achieved profits over the period.
1. The pricing and profitability of the overall segment has historically been very cyclical, starting from super-profits by early players followed by entry capital into the market driving the price down to unprofitable levels.
2. Insurers tend to focus selecting policies with lower risk exposure regardless of the market price which may be unprofitable in the long run.
3. Insurers may focus on writing high hazard risks for the high premium charged. Due to the typical low frequency and high severity claims for a typical Corporate portfolio, the high hazard risks can make super profits for a number of years but are susceptible to large losses which can result in a significant loss larger than all of the achieved profits over the period.
Guide to Commercial Insurance Pricing - Part 2 - Corporate Portfolio & Pricing Methods
CORPORATE SEGMENT
1. Key differences with SME segments are as follow:
2. Higher level of case underwriting with more exclusions or higher deductibles due to different insurance risk.
3. Poor quality of data due to business complexity and uniqueness.
4. With more capital and able to retain more insurance risk, majority of claim costs are from infrequent large claims.
5. Higher gross written premium & level of reinsurance.
1. Key differences with SME segments are as follow:
2. Higher level of case underwriting with more exclusions or higher deductibles due to different insurance risk.
3. Poor quality of data due to business complexity and uniqueness.
4. With more capital and able to retain more insurance risk, majority of claim costs are from infrequent large claims.
5. Higher gross written premium & level of reinsurance.
Subscribe to:
Posts (Atom)