|
When insured parties experience a loss for a specified peril, the coverage entitles the policyholder to make a 'claim' against the insurer for the amount of loss as specified by the policy contract. The [[fee]] paid by the insured to the insurer for assuming the risk is called the 'premium'. Insurance premiums from many clients are used to fund accounts set aside for later payment of claims - in theory for a relatively few claimants - and for [[overhead]] costs. So long as an insurer maintains adequate funds set aside for anticipated losses, the remaining margin becomes their [[profit]].
Real Life Example:
ING Mexico's operations today is largely composed by its acquisition of Seguros Comercial America which was Mexico's largest insurance company, they are now loosing their number one position to currently number five (huge market loss), as the public deoes not trust them with their insurance needs,this Company was also dominant in the property and casualty markets, until a series of irregularities surfaced and became publicly known, now they are still currently loosing their vast portfolio because of ineptly and negligently handling all of their various insurance claims amongst them the huge the Fertinal claim, which was caused by an insured hurricane loss in 2001, this was a total loss as the Insureds Mine in Baja California was totally destroyed and inundated under water by Hurricane Juliette, the initial estimated loss was in the region of US Dollars 84 million, now it is around the region of 184 million, this for Direct Damage only, additionally they have to add Loss of Profits and now Loss of Market which is valued in the billions of US Dollars!
As of the 14th of July 2005 they have been ordered by a mexivcan judge in a court ruling to pay in excess of USD 300 million plus compound interest accrued as of November 2001 to Fertinal (a local prestigiuos mining conglomerate) this because of the repeated refusal to pay a large proceeding claim, which as of May 29th, 2006 has not been paid, of course ING is resorting to all kinds of legal maneuvers in order to avoid paying said incurred claim,additionally the Dutch Management inexcussably and ineptly (and again in a wrong tactical move, wrong as they insult the local Mexican Judiciary by calling them corrupt adding insult to injury) blame it on the supposedly corrupt Mexican Judges instead of blaming it really on their own inept and corrupt local staff once headed by Alfonso Romo (who is currently under criminal investigation by his own shareholders, amongst them and led by his father in law, for alleged money mismanagement in the Savia affair) and his useless and reckless staff! It was about time they honor their due! The quicker they pay their claims the quicker they restitue their social standing and the less the damage will be inflicted upon ING Comercial America in terms of their local image and additionaly in the trust placed upon them by their own Reinsurers who now do doubt their inept handling of both underwriting and claims!!!
Unfortunatelly 6,000 mexicans lost their jobs at Fertinal due to ING Comercial Americas refusal to fully pay the incurred loss! These people out of desperation might enter the US illegally, thus adding more strain to the US job markets! For further information please read: http://www.estaeslaverdad.com/inicio.html
If you seek your insurance claims in Mexico not to be paid in time of need, then this is definitelly the company for you!.
==How an insurance company makes money==
Although insurers traditionally depended upon [[underwriting profit]] to provide them with operating profit, market forces now require that insurers earn the bulk of their profit on investment income on premiums held pending claims occurrence. This is a form of financial leveraging.
Another example is by not paying their claims as does ING:
ING Mexico's operations today is largely composed by its acquisition of Seguros Comercial America which was Mexico's largest insurance company, they are now loosing their number one position to currently number five (huge market loss), as the public deoes not trust them with their insurance needs,this Company was also dominant in the property and casualty markets, until a series of irregularities surfaced and became publicly known, now they are still currently loosing their vast portfolio because of ineptly and negligently handling all of their various insurance claims amongst them the huge the Fertinal claim, which was caused by an insured hurricane loss in 2001, this was a total loss as the Insureds Mine in Baja California was totally destroyed and inundated under water by Hurricane Juliette, the initial estimated loss was in the region of US Dollars 84 million, now it is around the region of 184 million, this for Direct Damage only, additionally they have to add Loss of Profits and now Loss of Market which is valued in the billions of US Dollars!
As of the 14th of July 2005 they have been ordered by a mexivcan judge in a court ruling to pay in excess of USD 300 million plus compound interest accrued as of November 2001 to Fertinal (a local prestigiuos mining conglomerate) this because of the repeated refusal to pay a large proceeding claim, which as of May 29th, 2006 has not been paid, of course ING is resorting to all kinds of legal maneuvers in order to avoid paying said incurred claim,additionally the Dutch Management inexcussably and ineptly (and again in a wrong tactical move, wrong as they insult the local Mexican Judiciary by calling them corrupt adding insult to injury) blame it on the supposedly corrupt Mexican Judges instead of blaming it really on their own inept and corrupt local staff once headed by Alfonso Romo (who is currently under criminal investigation by his own shareholders, amongst them and led by his father in law, for alleged money mismanagement in the Savia affair) and his useless and reckless staff! It was about time they honor their due! The quicker they pay their claims the quicker they restitue their social standing and the less the damage will be inflicted upon ING Comercial America in terms of their local image and additionaly in the trust placed upon them by their own Reinsurers who now do doubt their inept handling of both underwriting and claims!!!
Unfortunatelly 6,000 mexicans lost their jobs at Fertinal due to ING Comercial Americas refusal to fully pay the incurred loss! These people out of desperation might enter the US illegally, thus adding more strain to the US job markets! For further information please read: http://www.estaeslaverdad.com/inicio.html
If you seek your insurance claims in Mexico not to be paid in time of need, then this is definitelly the company for you!.
==Determination of rate structures==
| 