Insurance

2010 级 3B2金融学 102 本科班 乔贝 10154040206金融学 102 本科班 张多 10154040213金融学 102 本科班 周昕毓 10154040223金融学 102 本科班 宣沁瑶 10154040229

Insurance

Definition and Background1.

2.

Types of Insurance3.

Choice of Insurance4.

Functions of Insurance

Definition

and

Background

What is insurance?

Insurance is to show policy-holder is according to the contract, pay insurance premium to the underwriter, the insurer may be agreed upon in the contract by an occurrence of a property shall be liable to compensation for the losses caused by the insurance liability, or when the death, disability, disease or reaches the age of the contract, the time limit for the payment of the insurance benefits of commercial insurance responsibility behavior.

Background Insurance in some form is as old as historical s

ociety. So-called bottomry contracts were known to merchants of Babylon as early as 4000–3000 bc.

Bottomry was also practiced by the Hindus in 600 bc and was well understood in ancient Greece as early as the 4th century bc.

Ancient Roman law recognized the bottomry contract in which an article of agreement was drawn up and funds were deposited with a money changer.

Background Ocean Marine Insurance is the oldest fo

rm of insurance, probably dating to the Middle Ages.

The organization of Insurance took great steps forward with the formation and development of an insurance market on Lombard Street in London, England and subsequently-- since 1769--Lloyds of London.

Today, Lloyds still plays a prominent role in Marine Insurance.

The history of Insurance Ind

ustry

• 1984, People’s Insurance Company of China (PICC)

• 1988,Shenzhen Ping'an

• 2001, China’s entry into the WTO

• 1995, the PRC Insurance Law

• 1992, AIA

• 1991, China Pacific Insurance Co. Ltd.

Why do we need to buy insurance?

Risks and Losses

heavy weather

lightening

earthquake

volcanic eruption sandstorm Tsunami

fire theft wreck

crash collision

•What Are the Functions of Insurance?

In China, China Insurance Clauses(C.I.C. ） issued by the

People’s Insurance of China(PICC) is mainly adopted for international cargo transportation insurance.

Basic Risks Coverage

Additional Risks Coverage

All Risks(AR)All Risks(AR)

Free from Particular Average (FPA)Free from Particular Average (FPA)

With Particular Average(WPA/WA)With Particular Average(WPA/WA)

General Additional Risks

Special Additional Risks

China Insurance Clauses

Basic Functions of Insurance 

1.Primary Functions

2.Secondary Functions

3.Other Functions

Primary Functions of Insurance

Providing protection 

Collective risk bearing 

Evaluating risk 

Providing Certainty 

Secondary Functions of Insurance

Preventing losses 

Covering larger risks with small capital 

Helping in the development of larger industries

Other Functions of Insurance

A savings and investment tool 

Medium of earning foreign exchange

Risk Free trade

The function of auto insurance is to provide protection in the event of an automobile accident or other incident involving a motor vehicle. The policy is designed to pay for damage to property as well as medical expenses of injured parties.

•Automobile Insurance

Homeowner’s, or property, insurance protects your house or other real estate from unexpected damage or malicious actions. If your home is damaged, vandalized, or robbed, the functions of insurance for your home are to provide funds, typically in the form of reimbursement, to repair or replace those items affected by the incident.

•Homeowner's Insurance

•Life Insurance

Life insurance provides a lump sum of money to your chosen beneficiaries in the event of your death. Some types of life insurance expire after a certain number of years, while other types last forever.

•Health Insurance

The functions of insurance related to medicine are to offset the cost of well visits, sicknesses, and major health occurrences. Health insurance pays the bulk of your medical expenses when you need treatment. Most policies limit your potential expenses to relatively minor deductibles and participation costs called co-pays.

•Disability Insurance

Disability insurance pays you a monthly benefit if you get injured and are unable to perform the normal functions of your job. These payments will continue until you are well again or until you exhaust your benefits.

•Long-Term Care Insurance

If you need to stay in a nursing home or assisted living facility, long term care insurance will pay a daily or monthly benefit toward the cost of that care. These payments will continue until you no longer need that care or until you have exhausted your benefits.

Types of Insurance

Typical insurance companies & products

Common Insurance:

Personal Insurance:

Home insurance

Travel insurance

Private car insurance

Domestic helper insurance

products Life protection

Health Protection

Accident & Disability Protection

Property protection

A survey about insurance products

PICC

The background of

Ping An xinyi AXA kangyi

Insurance year 20 years(Since the

insured)

To 100 years old

Insurance disease 30 types Over 100 types

Payment time 8 years 10/15/20 years

Additional safeguards

no 2 types choices

Death Benefit 105% of the premium pay

Receive 100% of the

sum insured plus any

special bonus

Some Tips

How to choose the right insurance product

Decide the species (age )1

Decide the species (needs)2

Choose the exact product3

Some tips4

According to the age

• Children personal accident insurance

health insurance

education insurance• Adult personal accident insurance

health insurance

financial insurance• The aged personal accident insurance

health insurance

long-term life insurance

According to our needs

→Health

→Property such as car, house. ect

→Investment

Choosing the exact product

Make clear the insurance liability( 保险责任)

Make clear the scope of insurance coverage ( 保障范围 )

Note the non responsibility ( 免责条款 )

Calculate the price

Some tips

All the contracts should be carefully checked and verified. The things being protected is ours.

High yielding is always accompanied with high risks. Insurance is for protection, so in no case should we regard it as a profiteering tool.

Then make your own judgment, believe it or not.

Be polite. If you have time, listen to them first.

When facing the door-to-door selling

Don’t reject the sellers as soon as you see them.