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Business Knowledge for IT in Insurance: A Complete Handbook for IT Professionals

Book Description

"Business Knowledge for IT in Insurance deals with the alignment of IT and business in Insurance industry as well as the Reinsurance industry. The idea behind this publication is to introduce IT professionals to the concepts of the Insurance and Reinsurance. The chapters in the book cover the following topics: Overview of Insurance ; Types of Insurance products; Overview of Reinsurance ; Recent trends in Insurance ; Risk and Insurance ; Business Processes in Insurance ;Systems used in the Insurance industry ; IT projects that can be executed in Insurance companies ; And much more

Table of Contents

  1. Copyright
  2. Preface
  3. Acknowledgements
  4. Introduction
  5. 1. Overview of Insurance
    1. Introduction
    2. Definition of Insurance
    3. Definition of Indemnity
    4. Different Variations of Premiums
    5. History of Insurance
    6. Insurance Classifications
      1. Social versus Private Insurance
      2. Life versus Non-life
      3. Personal versus Commercial
      4. Direct Insurance versus Reinsurance
    7. The Global Insurance Market
      1. Analysis of a Pre-eminent Global Insurance Centre – United Kingdom
    8. The World’s Largest Insurance Companies
      1. Life Insurance Companies
      2. Property/Casualty Insurance Companies
        1. Insurance Brokers
  6. 2. Types of Insurance Products
    1. Introduction
    2. Life Insurance
      1. Mortality-based Insurance Policies
        1. Life insurance policies
        2. Term life insurance
        3. Cash-value life insurance policies
          1. Universal life insurance
          2. Whole life insurance policies
          3. Endowment insurance
        4. Annuities
        5. Fixed annuities
        6. Variable annuities
        7. Types of annuity contract
      2. Morbidity-based Insurance Policies
        1. Health insurance policies
        2. Long-term care insurance policies
        3. Disability insurance policies
    3. Non-life Insurance
      1. Property Insurance Policies
        1. Types of policies
      2. Liability Insurance Policies
      3. Package Insurance Policies
    4. Market Segmentation
    5. Distribution Channels
  7. 3. Overview of Reinsurance
    1. Introduction
    2. Brokers vs Direct Writers
    3. Definition of Reinsurance
    4. Functions of Reinsurance
    5. Providers of Reinsurance
      1. Types of Reinsurance Companies
    6. Purchasers of Reinsurance
    7. Nature of Reinsurance Contracts
      1. Treaty Reinsurance
      2. Facultative Reinsurance
    8. Types/Forms of Reinsurance
      1. Proportional Reinsurance
      2. Quota Share Reinsurance
      3. Surplus Reinsurance
      4. Non-proportional Reinsurance
    9. Benefits of Reinsurance
  8. 4. The Business Environment
    1. Introduction
    2. Environmental Factors Affecting the Insurance Industry
      1. Political and Legal
      2. Economic
      3. Socio-cultural
      4. Technological
    3. Competitive Landscape
      1. Marketplace Convergence
    4. Profile of Major Insurers around the World
      1. Life Insurance Companies
        1. ING Group
        2. AXA
        3. Assicurazioni Generali
        4. Aviva
      2. Property/Casualty
        1. Allianz
        2. American International Group (AIG)
        3. Zurich Financial Services
      3. Reinsurers
        1. Munich Reinsurance Co.
        2. Swiss Reinsurance Co.
        3. Hannover Rueckversicherung AG
        4. SCOR SE
      4. Insurance Brokers
        1. Marsh & McLennan Companies Inc.
        2. Aon Corporation
        3. Arthur J. Gallagher & Co.
    5. Rating Agencies
      1. Standard & Poor’s
      2. Moody’s
      3. Fitch
      4. A.M. Best Company
      5. Sample Ratings
    6. Insurer Financial Strength Ratings
      1. Insurer Financial Enhancement Ratings
      2. Insurer Financial Strength Ratings
        1. AAA
        2. AA
        3. A
        4. BBB
        5. BB
        6. B
        7. CCC
        8. CC
        9. R
        10. NR
        11. Plus (+) or minus (−)
  9. 5. Trends in Insurance
    1. Introduction
    2. The Introduction of Solvency II
    3. Introduction of MiFID
      1. What is MiFID?
    4. Enforcement of AML/KYC in Insurance
      1. What is Money Laundering?
        1. International standards
        2. Basic AML principles
        3. Suspicious activity monitoring and reporting
    5. Introduction of Islamic Insurance
    6. Popularity of Bancassurance
    7. Growth of the Insurance Securitisation Market
      1. Structure of Insurance-linked Securities
      2. The Life and Cat Bond Markets
      3. Who Buys Insurance-linked Securities and Why?
    8. Rise of Sovereign Wealth Funds (SWFs)
    9. Insurers Targeting the High Net Worth Market Segment
      1. Distribution
      2. Manufacturing
      3. Brand
  10. 6. Business Processes in Insurance
    1. Introduction
    2. Role of Capital and Surplus
    3. Underwriting
      1. Definition of Insurance Underwriting
      2. Main Task of an Underwriter
      3. Why Insurance Underwriting is Important
    4. The Application Process
      1. How an Insurer Processes Information
      2. Risk Classifications
    5. Claims Administration
      1. Claims/Loss Adjustment
      2. Subrogation/Salvage
      3. Catastrophe Management
        1. Identification of catastrophe risk appetite
        2. Measurement of catastrophe exposure
        3. Pricing for catastrophe exposure
        4. Control of catastrophe exposure
        5. Evaluation of the ability to pay catastrophe losses
    6. Pricing and Product Development
      1. Premium Rating
    7. Brokerage
  11. 7. Risk and Insurance
    1. Introduction
    2. Definition of Risk in Insurance
    3. The Workings of Insurance
    4. Risk Classification
      1. Pure Risk Classifications
    5. Insurance from a Risk Perspective
      1. The Risk Management Process
    6. Theoretical Underpinnings of Risk in Insurance
      1. Probability Theory
        1. Example
      2. Law of Large Numbers
    7. Features of Insurable Risk
    8. Limits on Policy Benefits
      1. Deductible (Excess)
        1. Example
      2. Benefit Limits
    9. The Role of the Actuary
      1. What is an Actuary?
    10. Risk Management in Reinsurance
      1. Risk Modelling
      2. Underwriting and Risk
      3. Risk Assessment
        1. Principles of insurability
      4. Capacity Allocation, Accumulation and Peak Risks
      5. Diversification and Risk Management
  12. 8. Common Systems used in Insurance
    1. Introduction
    2. History of the IT Function in Insurance
    3. Legacy Systems in Insurance
      1. High Maintenance and Staffing Costs that Continue to Grow
      2. Many Legacy Systems are Loosely Tied Together and Guarantee Business Silos
      3. The Limitation of Growth and Innovation as a Result of Limited Functionality
      4. Purely Data-driven Architecture excludes access to Business Content
      5. Possible Solutions to these Issues?
        1. Too much risk
        2. Prohibitive cost
        3. User reluctance
        4. Limited business agility
        5. Speed of delivery
    4. Profile of a System
      1. System: ALIS
      2. Vendor: FIS-Software Limited
        1. Overview
        2. Products types supported by ALIS
        3. Generic product features supported within ALIS
        4. Calculations
        5. Covers
        6. Funds
        7. Commissions
        8. Charges
        9. Allocation rates
        10. Roles
        11. Limits
        12. Premiums
        13. Claims
        14. Loans
    5. Other Systems
  13. 9. IT Projects
    1. Introduction
    2. Green IT
      1. Background to Green IT Practices
      2. How Does this Relate to IT?
      3. Business Justification for a Green IT Strategy
      4. Green Facts
    3. Implementation of Thin-Client Computing
      1. Why Should Insurers Re-examine Thin-client Computing?
      2. Going Green Provides Further Impetus for Thin-client Acquisition
      3. Preparation for a Thin-client Implementation
        1. Recommended preparatory steps
      4. Conclusion
    4. Virtualisation
    5. Selection of the Right Virtualisation Technology
      1. Mobility and Motioning
      2. Maintenance and Change Freeze
      3. Consistency of Workload Patterns
      4. Security
        1. Security zones
        2. Network and firewall rules
        3. Information privacy
      5. Overhead and Scalability Concerns
        1. I/O rates
        2. Non-computing-intensive applications
        3. Software licensing models
      6. Financial Considerations
        1. Licensing costs
        2. Implementation costs
        3. Hardware and software savings
      7. Case Study
        1. Overview
          1. Business challenge
          2. Solution
          3. Key benefits
        2. The server proliferation issue
        3. Changing course to save money
        4. Rapid provisioning changes the mindset of developers
    6. Conclusion
  14. 10. Methodology, Skills and Tools
    1. Introduction
    2. Overview of Mainframe Technologies
    3. Methodologies
      1. Information Technology Infrastructure Library (ITIL®)
        1. How is ITIL organised?
      2. RUP
      3. Capability Maturity Model (CMM)
      4. PRINCE2
      5. UML
      6. V-Model
      7. RAD
        1. Core elements of RAD
      8. Agile
      9. Extreme Programming
      10. Pair Programming
    4. Business and Systems Analysis Methods
      1. Business Rules Approach
      2. Entity-Relationship Diagrams
      3. Prototyping
    5. Testing Methods
      1. Equivalence Partitioning
      2. Boundary Value Analysis
      3. Error Guessing
    6. Tools
      1. IBM Rational Rose
      2. IBM Rational ClearCase
      3. Mercury QTP
      4. IBM Rational ClearQuest
      5. Mercury Test Director (Quality Centre)
      6. Oracle Designer
      7. PowerDesigner
    7. Common IT Skills Required
      1. Mainframe Skills
    8. Soft Skills
  15. 11. Commonly Used Terminology
    1. Introduction
    2. List of Terms
  16. 12. The Future
    1. The Future: What does it hold for IT and Business in Insurance?
    2. Future Insurance Demand and Supply Trends
      1. Private Insurance Sector
        1. Demand
        2. Supply
      2. Public Insurance Sector
    3. Continued Financial Services Integration
      1. What does the future hold for financial services integration?
    4. SWFs Investing in Insurance Firms
    5. Increasing Role of Technology in Insurance
      1. Levers for Improving IT Performance and Cost Position
      2. Service-oriented Architecture (SOA)
      3. Telematics
    6. Emerging Insurance Centres – Spotlight on Bahrain
      1. Political and Economic Overview of Bahrain
      2. Insurance Market Overview
      3. Regulatory Environment
      4. Future of Insurance in Bahrain
    7. Conclusion
  17. Appendix
    1. Bibliography
      1.  
  18. About the Bizle Brand
  19. Introducing Bizle.biz
  20. Introducing Global Real Estate Investment Series (GREIS)
  21. Other Titles in the Bizle Professional Series
  22. Useful Job Boards