MANAGEMENT

Detailed explanation-1: -The insurance company shares the margins with the agency/broker by providing commissions and/or compensation. The emphasis on the various activities depends on the business model. The key activities of an insurance company include underwriting, channel maintenance (agency/broker/digital) and investing.

Detailed explanation-2: -The essential insurance model involves pooling risk from individual payers and redistributing it across a larger portfolio. Most insurance companies generate revenue in two ways: Charging premiums in exchange for insurance coverage, then reinvesting those premiums into other interest-generating assets.

Detailed explanation-3: -Then we examine in greater detail the three most important types of insurance: property, liability, and life.

Detailed explanation-4: -The Statutory Accounting Principles (SAP) are accounting regulations for the preparation of an insurance firm’s financial statements. The focus of SAP is to ensure the solvency of insurance firms so that they are able to meet the obligations to their policyholders. State law oversees the implementation of SAP.