Insurance products are actions in the system of protecting various interests of individuals, legal entities for which there is a threat, but it does not always happen. The certificate of purchase of any insurance product is an insurance policy.
Insurance
The insurance system is the protection of various interests for which there is a threat. Also, this interest means a lot to a certain person. Separately, for each person the threat becomes small, but in the whole country, the amount of losses due to loss of property becomes huge. Therefore, there is a need for insurance and the definition of an insurance product.
Every person in his life is faced with different situations, and they are not always positive. Many can threaten life, health to him and his close people, property. The danger that a person realizes and understands is expressed in the word "risk".
Risk is an event that may occur and has negative consequences. This event can occur due to the human factor and environmental conditions. There is insurance to manage the consequences. For example, a person has insured his house for a specific period of time against the risk of “fire”. During the term of the contract, a fire occurred, the client turned to the insurance company, and received money, based on damage and the insurance amount specified in the contract. If the insured event does not happen, then the client does not receive anything.
What is insurance? The insurance system implies joint liability for damage caused to one. In this case, common funds in the fund are used.
Functions
- Risky. Transfer of liability for damages to an insurance company by paying a fee under an insurance contract.
- Warning. Actions are being taken to prevent an insured event and minimize loss.
- Control. Control over the formation of the fund, the use of funds only for their intended purpose.
- Savings. With life insurance, the client is offered insurance and money saving services at the same time.
Insurance products
Insurance products are services that insurance companies provide to their customers, depending on the needs of the latter. Each insurance product has its own object (which will be insured), risk (the moment of occurrence of the event at which payment will occur), maximum and minimum amounts (cost), tariff (price), conditions and payment period. An insurance policy is a confirmation that a customer has purchased a service from an insurance company. This contract becomes a legal document, as it has information about the policyholder, insurer, subject of insurance, conditions, rights and obligations of both parties.
The insurance premium (the amount received from the client) is less than the insurance amount. The difference in the amount and installment helps most people to purchase insurance services, that is, the client in the insured event will receive more than paid. But insurance companies will not incur large losses, since insured events will not occur with all insurers, respectively, all will not need to be paid. The specificity of the insurance system is that there are always fewer insured events than the company's customers (force majeure may be an exception).
It is impossible to determine in advance the number of insured events and, therefore, to find out the amount of insurance payments. Therefore, the balance of financial obligations between insurers and their customers is violated, it is uneven. But the level of tariffs for products should be average so that the client can purchase, and the insurance company can pay everyone in case of insurance cases and remain in the financial market. For this, basic rates and correction factors are used individually for each insurance object. New insurance products appear due to the need to sell the service by the insurer, as clients' interests change over time. The obligation to sell the service forces you to lower the price, and the desire to make a profit - to increase it. Therefore, there is an analysis of insurance products, their updating and change in accordance with supply and demand.
Insurance classification
The grouping of insurance products depends on the object, amount, tariffs, risks, organization, etc. The name and quantity of products depends on the desire of consumers. Types of insurance products for entry into the insurance market system are divided into mandatory and voluntary forms.
Compulsory insurance
Compulsory insurance applies to every citizen (the object is related to the public interest), since it is determined by the state. Types of insurance:
- medical;
- civil servants;
- workers whose activities are associated with a health risk;
- health and life of the crew;
- passengers
- builders;
- motor third party liability insurance;
- fire fighting.
Voluntary insurance
Voluntary insurance is carried out at the request of the client and is divided into:
- personal;
- property;
- citizen liability insurance.
Who is eligible for insurance?
Insurance products, insurance services can be concluded only to customers who have a legitimate interest in insuring a particular property. Interest is determined by the legal relationship of a person and a specific object.
The Civil Code defines a list of unacceptable interests in insurance:
- unlawful;
- losses incurred during lottery games, betting;
- losses of the insured person for the release of the hostage.
Property insurance
With property insurance, it is necessary to prove interest in insuring an object with the help of tenure, lease, temporary storage, etc. But, if the property was insured, for example, not by the owner, then in the insured event the owner of the object will receive payment.
Personal insurance
With personal insurance, each person can insure his life, he chooses the insurance amount on his own, based on financial capabilities. In the Russian Federation, you can insure other people, but only with the permission of the insured person. What are the interests of personal insurance? These are insurance products, the risks of which will be death, accidents, illness, disability in certain circumstances. Before you purchase a policy, you need to clarify the list of risks. It differs in different companies, as insurers independently develop products in accordance with the law.
With personal insurance, the beneficiaries are the persons prescribed in the contract. If they were not indicated, then the heirs are by law. During the term of the contract, the client has the right to change the beneficiary, as well as the terms of insurance, if the insurance company allows it.
Bank card protection
Bank card insurance is necessary for budget security in case of various fraudulent actions of third parties. Most banks offer card insurance, but before that you need to clarify the risks. The main risks that the insurance program covers:
- Unauthorized debit of money from the card due to loss, robbery, robbery, theft that occurred within 48 hours (that is, you need to contact the bank immediately when the event happened).
- Theft of money that occurred within two hours after the client received it at the ATM.
- Write-off of money from the card account (which remained with the holder) within 48 hours before it was blocked.
- Recovering the key of a stolen card;
- Recovering documentation that was stolen with the card;
- Issuing a card within two weeks with saving the account.
Bank card insurance is voluntary. But with the development of technology, it becomes popular with most customers, as many have encountered such a problem and understand its necessity.
Risks:
- robbery during a withdrawal of money;
- online fraud;
- use of the card after theft and loss;
- expenses after receiving a card after loss will be refunded.
Sale of insurance products
In the Russian Federation, insurance coverage is small compared to Western countries. The goal of insurance companies is to increase the number of consumers. To do this, consider their needs and interests. The first step in achieving this goal is the development of insurance products. And here the first difficulties appear:
- the client does not like the conditions;
- price;
- needs are different from supply.
For the successful implementation of the service, attention must be paid to the interest of the client. Without a desire to purchase a product, there will be no sale. Therefore, the launch of new products in insurance companies can take a long time, because you need to analyze the market. Clients are distinguished by their social status, living conditions, interests, and standard of living. In most cases, in order for the client to be able and willing to purchase the product, they make an individual calculation, include the risks in the insurance contract that they need. Therefore, the insured amount and premium will differ for different customers.
There are also boxed products targeted for general sales. Their difference from individual calculation is that there are no calculations, the amounts are taken from the table. Such a system is easy to sell, since there is no need for knowledge in the calculations. What types of insurance do they use boxed insurance? These are insurance products aimed at a large number of buyers at an affordable price, for example, a house, an apartment, civil liability. The client chooses the insured amount according to the table in the contract and a premium is also determined.
Typically, large insurance companies relate to product development in more detail, have a wide range. This helps most customers find the most suitable service for them. But there are difficulties for intermediaries in the sale (since you need to know the intricacies of each product, to determine which service is needed for a particular buyer).
Promotion of insurance products is carried out in two ways:
- A quick start is to use all possible means of conveying information to the consumer (advertising, the work of agents, representatives of insurance companies).
- A cautious launch, in which there is a gradual introduction of the service to the market. That is, the insurer does not advertise, does not make efforts. Usually there is a sale in a certain territory, then it spreads further with a positive attitude from customers. Further, insurance companies begin to use advertising and other types of information.
Sales channels
To implement the company's services, several channels of sales of insurance products are used. They are necessary in order to maximize the coverage of the population, depending on social status, age, interests, lifestyle and financial situation. Several sales channels allow the company to acquire regular customers.
Direct sales
With direct sales, an insurance company can control the process, change technology, use a call center, and determine customer wishes on the spot. But loss of customers may occur, as not everyone wants to go to the office of the company. There are also high costs of maintaining the office.
Agency sales
The advantages of agent sales are low initial costs, high motivation of intermediaries to attract a buyer, convenience in choosing a place and time for a meeting, customer contact with one agent. The disadvantage in this type of sales is low control in the process of offering the product, possible errors, sometimes fraud, the likelihood of losing customers after the agent’s dismissal.
Sales brokers
The work of brokers is the most professional, a plus for the company is the ability to sell services where there is no way to sell the product in another way. Also, brokers sell complex products and for large sums. But the minus for the insurer will be a high remuneration for the broker, the probability of the latter working simultaneously for several companies, errors in contracts are also possible. In insurance cases, errors are of great importance. Since an error can lead to non-payment to the insured, therefore, in the future, the client will consider this insurance company to be unprofessional and will no longer go there.
What is insurance? This is an opportunity for a person in various situations requiring financial assistance to protect themselves, loved ones, property. Various events take place in people's lives; they can be pleasant and not very good. For example, diseases, deaths, fires, natural disasters, accidents, having children, weddings, buying property, and relaxing. So that each event does not bring large costs, you can prepare in advance by choosing the most advantageous offer for yourself.