WinsurTech Blog | Insurance Concepts and Practical Solutions

Pure Risk vs Speculative Risk

Author - Webner
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12:11 pm
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Risk is the uncertainty that a loss may occur. Pure Risk mean it is certain that gain cannot be made out of the situation – only loss or no loss will occur. Like death in accident is a pure risk. Speculative risk is that a loss, no loss or gain – all 3 are possible. Like in gambling or stock market investments all 3 are possible so risk in these is an example of speculative risk. Pure risk can be insured by speculative risk cannot be insured […]

Insurance Agency Management System Major Features and Other Details

Author - Webner
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11:28 am
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This post tries to give a short introduction to most of the core features inside an Agency Management System. It is compiled based on our experience of developing multiple AMS. Check our website https://winsurtech.com/ to learn more about us or write to us at our development email id dev@webners.com in case you need help with development or enhancement of your own AMS. Also check our free Web based AL3 viewer at https://products.winsurtech.com/ and Our Proposal Management System (https://www.proposalways.com/).

As you will read below AMS […]

Understanding Employee / Group Benefits Insurance Policies

Author - Harinder Jakhar
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12:26 pm
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Employee / Group Benefits

A group health plan/insurance policy bought by an employer or by an employee organization (such as a union), or both, for its employees or participants or their dependents, is called as employee/group benefits policy.

Some of the important terms are as follows:

1) Fiduciary
A fiduciary is a person who owns a plan, means he will take care of plans so that if there is any type of loss then it should be minimal. In layman’s term, he/she can […]

Mapping signature image to ACORD FORM

Author - Ashish Gautam
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12:44 pm
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Mapping signature image to ACORD FORM

In most of the ACORD forms we’ve Authorized signature box in which we fill the name of some Authorized person and we can also map the signature image of the person along with the text name of the authorized person.

To map the image we first create a PDF of image and place the signature image at the required position (position depends upon the ACORD form) in the PDF. After converting the image to PDF we merge both the PDFs (Image PDF and already mapped ACORD FORM pdf) using […]

Insurance Producers and their Types

Author - Webner
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9:39 am
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Anybody who produces sales of insurance products is a Producer or Insurance Agent. But based on their mode of working, they can be classified into different types.

Independent Insurance Producers

Independent Insurance Producers are not bound to selling insurance products of a single insurance company. They generally sell insurance products of several insurance companies and get commission for each sale from the insurance company. They figure out the best product for their client irrespective of the insurance company and suggest the same. At renewal time also they look for the best option for their client and may switch […]

What is P & C insurance?

Author - Webner
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11:25 am
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Property and Casualty insurance (or P & C as it is usually called), are the types of insurance that cover the following:

Property – Property insurance protects the insured against financial consequences of damage to the property of every kind that is insured like building, automobile, marine etc.

Casualty – Casualty insurance protects the insured against the financial consequences of legal liability – like death, injury or disability to another person due to accident in which insured is found at fault. It also includes protecting against the cost of repair to the affected person’s property. For example in a car accident if […]

Deductible, Elimination Period (Waiting Period) and Coinsurance

Author - Webner
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2:08 pm
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Suppose someone has a medical insurance policy from an insurer. He visits hospital and bill is of $25. He claims it from the insurance company. Company pays but they incur $400 on the formalities (paperwork for example) to grant $25. Hence it costs the company $425. From where these $400 be recovered? One way to recover such expenses is to raise the policy premium, but that would mean raising the expenses for the customer (or losing potential customers). An alternative for insurance company is to tell the customer upfront at the time of policy purchase that small expenses up to […]

Understanding Insurance Policy Downloads

Author - Webner
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11:09 am
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Policy Downloads is the process of bringing policy related information and transaction details from Insurance Carriers into agency management system in use by the agency. An insurance agency can sell policies of several different insurance carriers (like Hartford, Progressive etc). Insurance policies also undergo changes from time to time like renewals, cancellation, reinstatement, endorsements etc. These are the transactions. This list of transactions is recorded at insurance company’s end (carrier’s end). How to bring this information from each carrier and consolidate into Insurance agency’s database or CRM or agency management system? This requirement is called as Policy […]

What is Insurance Policy Reconcile or Policy Reconciliation?

Author - Webner
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1:00 pm
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0 Comments
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When polices are downloaded from carriers (like through IVANS downloads, EBix Team-up Downloads or other 3rd party download applications) what should be done with each policy? Basically policy download actually means policy transactions download. Each downloaded record is a transaction related to a policy. For example policy Renewal (RWL – renewal of an existing policy), Non-Renewal (RWX – user decides to not to renew an existing policy), New Business Issue (NBS – new policy), Rewrite (REW – cancelling and rewriting an existing policy with modifications), Cancellation (XLC – cancel existing ongoing policy), Policy Change (PCH – endorsements or changes to an existing policy) or […]

What does Indemnity mean in insurance?

Author - Webner
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2:18 pm
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Indemnity in insurance means in case the loss (financial or death) happens the insurer has to bring the state (in whole or part) of the insured back to what it was prior to the loss. Indemnity is the obligation that one party holds in paying compensation to another party that suffered losses. For example if a car accident happens insurer has to pay the car repair charges in part or whole according to the terms of car insurance policy. In case of life insurance if the insured dies, insurance company has to indemnify the family of insured with life insurance […]

What is Insurable Interest

Author - Webner
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1:14 pm
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0 Comments
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Insurable interest means if the person who wants insurance to be done has any interest in the item being insured or not. For example a human being has natural interest in own life and health (mostly), similarly he has financial interest in his property and car, he has interest in his loved ones and in his business.Therefore it makes sense for the person to insure his own life and health, his property, car, to buy life and health cover for his loved ones and business. An insurance company (carrier like Travelers, Metlife, State Farm, Safeco) wants to insure only […]

Law of Large Numbers in Insurance

Author - Webner
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2:11 pm
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Law of Large Numbers is the basis for successfully running Insurance Business. If historical data is collected for several years for life insurance for example and the information like how many people died during the policy, how many claims were made etc is available then it can be deduced that on average what is the percentage of claims that will possibly be made for an insurance policy (with certain deviation of course). On this basis cost can be calculated and premium amount can be decided. This same concept applies to Car insurance, property insurance, health and other types of insurance […]

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