Independent agency management is all about risk management in the insurance sector. What is Insurance Management? Is Insurance Management a field of Insurance, where Insurance Agents, Managers, and reinsurance companies make decisions about risk management? No, it's not, it's Management! Insurance Managers have the experience and training to understand the current and future risk in markets and form strategies and plans for those risks.
Independent Insurance Management, which I call Independent Insurance Management, is not a field of Insurance but rather an Independent Insurance Market Research Study (IIM). IIM's are produced from case studies and from gathering of Information from the public and Insurance Industry Organizations. This information provides an understanding of how the insurance market works today and how it may change over time.
Managing an independent insurance agency includes a methodology that takes into account not only key risk factors but also other important characteristics and attributes of the business or organization, such as size, industry, location, and competition. One of the most important features of the insurance industry is captive and outsourced captive. Captive and outsourced captive occur when an organization has large amounts of insurance claims, has a smaller than average ratio of claims to policy holders, and has a high turn-over rate. In other words, the insurance industry has many potential captive risks.
Another important characteristic of the insurance industry is a high volume of new claims. This characteristic is called "the shopper's paradise." There are many new business opportunities in the insurance sector including new business claims which drives up the volume of new claims caused by the same or similar types of claims. When companies are large and stable enough to withstand these types of shocks, independent insurance management services are well worth the money and the time spent on providing management services to them. In recent years the global economy has had many negative shocks to the American company.
Other important features of the insurance market include the number of mature companies in the market, the number of mature companies that are profitable, and the age and experience of those mature companies. It is interesting to note that just because one business is more mature and has been around for a long period of time does not mean that it will be immune from experiencing negative shocks to its profits as the global economy continues to evolve. Also, while some risks may be unique to particular industries, such as commodity markets, there are some risks inherent to any market and almost certainly a large portion of the insurance market will face these types of risks. These challenges can be managed, if we know how, by leading independent insurance management services organizations.
Finally, there are some final considerations of risk in the international insurance market and this relates to the state of transition risk. The transition risk of the changing business environment occurs when companies in different regions of the world experience similar issues but in different ways. For example, certain countries have high mortality and high health-care costs while others have low rates and relatively stable health-care costs. These differences may be caused by a lack of cross-rational health-care provision or a dearth of good specialization in certain areas. In such cases, the solution might be to retain some captive reinsurance businesses but to move those businesses to places with similar characteristics. Otherwise, countries could face identical problems but at a much later stage. If you probably want to get more enlightened on this topic, then click on this related post: https://en.wikipedia.org/wiki/Insurance.