| CODE | INS2040 | ||||||||
| TITLE | Insurance Market, Practice and Principles | ||||||||
| UM LEVEL | 02 - Years 2, 3 in Modular Undergraduate Course | ||||||||
| MQF LEVEL | 5 | ||||||||
| ECTS CREDITS | 4 | ||||||||
| DEPARTMENT | Insurance and Risk Management | ||||||||
| DESCRIPTION | The unit describes the components making up a typical insurance market detailing the function, scope and main operations conducted by intermediaries such as brokers and agents as well as the various sellers including insurers, captive companies, reinsurers and mutual. The unit also dwells on the supervisory framework and explains in detail the role and function of the regulator in ensuring that firms are compliant with regulatory requirements and an overview of the main legislation is outlined. There will also be reference to how the regulator carries out its supervisory functions particularly through on-site and off-site monitoring. There will be reference to variety of processes particularly the underwriting process detailing how an insurer gauges a risk and set policy terms and conditions. Furthermore the process of claims is discussed by which a student understands the full procedure from notification stage to investigation and settlement phase. Moreover this unit will incorporate the basic principles of insurance namely Insurable Interest, Utmost good faith, Proximate cause, Indemnity, Subrogation and Contribution. Study-unit Aims: To provide the participant with: - knowledge and understanding of the overall structure of the international and local insurance market and their respective practices; - knowledge and understanding of the general market principles and practices; - knowledge and understanding of the legislative framework governing the indigenous market including supervision; - introductory knowledge on processes involving underwriting, claims and re-insurance. To develop in the participants: - fundamental information on the 6 principles of insurance which form the basis of both the underwriting and claims operations in insurance practice; - focus on the insurance contract with particular emphasis on the application of the Insurance principles; - an understanding of typical clauses found in insurance contracts; - the ability to apply such principles in underwriting and claims situations; - the understanding of the importance of such principles in the analysis of risk and the fair settlement of claims; - general principles and the formation of an insurance contract; - development of Insurable Interest in Insurance contracts; - creation of Insurable Interest and its application to Insurance contracts; - the principle of Utmost Good Faith in Insurance contracts - duty of disclosure of material facts - consequences of non-disclosure - terms and conditions in an insurance contract and their respective applications The principle of proximate cause and its application to insurance claims; - scope and application of Indemnity as a principle in claims settlement; - the measure of indemnity under different claims of insurance; - methods of providing indemnity; - the rights of an insurer under the subrogation clause; - operation of Subrogation in practice; - contribution and its application in settling a claim which falls under this clause. Learning Outcomes: 1. Knowledge & Understanding By the end of the study-unit the student will be able to: - understand the overall structure of the international and local insurance market, legislation, underwriting, claims and re-insurance; - understand the general framework of the insurance market; - obtain knowledge of the different types of market players; - understand the different roles and functions of market players; - understand the general legal framework governing markets; - know how the underwriting process is undertaken; - know how the claims process is conducted; - understand the different types of reinsurance contracts; - understand the need for supervision and regulation; - understand why certain principles and process are adopted; - know how supervision is carried out by the regulator; - understand the nature and applicability of insurance principles in the acceptance of risks and settlement of claims. 2. Skills By the end of the study-unit the student will be able to: - work within an insurance environment and apply acquired knowledge to be able to understand why certain principle and process are adopted; - explain the function and role of every market player; - work within an insurance environment and apply acquired knowledge; - deal with and request for insurance protection; - deal with a claim made under an insurance policy; - place reinsurance with a reinsurer; - comply with requirements both legislative and regulatory. Main Text/s and any supplementary readings: - Insurance Practice and regulation P01 by Dr Derek Atkins and Ian Bates – The Chartered Insurance Institute 2004 - Insurance, the Market , legal and regulatory background IF1 by David Ranson– The Chartered Insurance Institute 2007 - CII – P05 Insurance Law - Supplementary Text - CII – IF1 Insurance, the Market, Legal and Regulatory Background. - Success in Insurance – S.P. Diacon & R.L. Corter - Elements of Insurance – D.S. Harsell - Principles and Practice of Insurance – Mark S. Dacay - Introduction to Insurance – Michael G. Collins - Introduction to Insurance – G.C.A. Dickson & J.T. Steal SUPPLEMENTARY READING - Introduction to Insurance by GCA Dickson and JT Steele – Pitman 2nd edition 1984 - Insurance handbook by Barlow Lyde and Gilbert – Tolley’s and the CII 2nd edition 2000 - Success in insurance by SR Diacon and RL Carter – John Murray 2nd edition 1988 - Marketing made simple by Geoff Lancaster and Paul Reynolds – made simple books 2002 |
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| STUDY-UNIT TYPE | Lecture and Tutorial | ||||||||
| METHOD OF ASSESSMENT |
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| LECTURER/S | Nigel Rausi |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2025/6. It may be subject to change in subsequent years. |
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