Category: Management

What do insurers do?

Insurers perform a series of functions, many of them really important roles in our society.

The key role of insurers is to help their policyholders manage risk efficiently through providing insurance products, and paying the claims covered by their insurance policies.

In fact, according to the Financial Ombudsman Service (FOS), insurers pay out more than 97 per cent of the claims they receive*.

Insurers have the ability to help individuals and communities recover after natural disasters. They are also large direct and indirect employers and are a vital part of the Australian economy. Insurers are large institutional investors, helping to fund economic activity such as infrastructure projects. Insurance also plays an essential role in the operation of the Australian economy because it encourages people and businesses to make high-value investments, such as committing to buying a house or spending money on infrastructure for a business.

A robust insurance industry is the hallmark of a modern society and economy.

* Financial Ombudsman Service General Insurance Code of Practice Overview for the Year 2011-12

Pooling insurance premiums

Insurance is all about pooling the resources of a large number of people with similar risks to make sure that the few who experience loss are protected.

When you pay an insurance premium, you are putting a little of your own money into a pool.

With general insurance, pooling resources through the payment of a premium may allow you to avoid paying the full cost of replacing, repairing, rebuilding or restoring valuable things if they are lost, stolen, damaged or destroyed, or being saddled with a large debt or liability.

If your property is accidentally lost, stolen, damaged or destroyed, and you have a policy that covers the property for those risks, you can make a claim and draw on that pool of money to help pay for repairs or replacement costs.

However, insurance is not the same as banking. When you pay an insurance premium, you will have access to the pool of money only if you claim a loss that is covered by your insurance policy.

It is possible that a person who has paid an insurance premium for many years might never make a claim.

When you buy an insurance policy, your insurer promises it will pay you for the type of loss stipulated in the policy – such as an accident, theft, loss or catastrophe – by funding repairs or replacement of items, up to the limit of your policy, or sometimes by providing a cash settlement. Each insurer’s policies have different rules about what the policy will cover. Exclusions may apply, so you should read your policy carefully and seek advice if you’re not sure what your policy will cover.

What is underwriting?

Underwriting is the way an insurer works out how much to charge for each risk they cover for each person who buys an insurance policy and under what terms.

When preparing a policy, insurance underwriters will calculate:

  • How much they will agree to pay for a loss
  • Under what circumstances they will make a payment
  • How much the premium will be

Underwriters think about a number of different things when working out the price of a particular risk for insurance. For example, car insurance premiums may vary depending on the age, sex and driving record of the main drivers, location and the type and age of the car.

Every insurer has its own set of underwriting guidelines to help the underwriter determine whether or not the company should accept the risk of a particular situation.

In some cases, an insurer may decide it won’t cover a particular risk. This often opens the market up for other insurers.

Underwriting involves working out a premium that is low enough to attract a good number of buyers, and high enough so that there will be enough money in the pooled funds to pay all the claims that might be made, plus make a profit for the insurer’s shareholders.

What is reinsurance?

Reinsurance is like insurance for insurers. It can be used to cover different risks for insurers. For example insurers may use reinsurance to make sure they can pay a large number of claims if a big disaster, such as a cyclone or flood, happens. This is usually called catastrophe cover to cover the big volumes of claims that may occur if there is a natural disaster.

Insurers may also use reinsurance to cover situations where they experience claims from policyholders that are higher than a certain value, which has been agreed beforehand with the reinsurer.

Reinsurance involves a number of insurers, often from different geographic regions, that pool together to share their risk exposure.



Hotel Management

Hotel Management

or in other words many management guru name it as Hospitality Management is:

The specialty of overseeing the day-to-day operations of a hotel. Hotel managers work in a very dynamic and fast-paced service industry and may perform a number of different tasks depending on the establishment. Large or full-service hotels often require hotel managers to oversee a large staff in various departments including housekeeping, maintenance, sales and marketing, safety, front-office, and food service. They may be required to prepare annual operating budgets and monthly reports for owners. They may also be responsible for developing and implementing procedures for sales and marketing strategies. They may hire and train staff, inspect guest rooms and ensure public areas and grounds are clean and meet safe standards. Hotel managers are often required to work long and irregular hours. They may be required to work nights and weekends.Hotel Management

Small hotels may require hotel managers who are able to perform a number of hands-on tasks. Owners of small hotels may prefer to hire two-person, onsite management teams, and they typically provide their management teams with living quarters. Managers are responsible for overseeing guest check-in, maintenance, bookkeeping, supervising some staff and problem solving. They are expected to manage and resolve problems at all hours.

The main priority of hotel managers is to ensure guest satisfaction and safety. Full-service hotels typically require managers to have a minimum of two years experience in the industry and in a supervisory or management position. Many require managers to have a degree in business or hospitality. Hotel managers need to have good verbal and written communication skills when interacting with hotel owners, staff and guests. They should possess excellent management and supervisory skills. They should also have accounting and budgeting skills. They need to be proficient with computers and be able to learn industry-specific software such as reservation systems.



Hospital Management

Hospital Management

is a term very broad in scope and may be defined from different aspects. It mainly relates to management of all aspects of a hospital; a coordination of all elements of a hospital. This may range from patient care to record keeping to inventory of medicines and cleanliness. To be able to become a hospital management professional requires taking care of each and every element of the hospital.

Define Hospital Management

Attributes of Hospital Management

In every health care setting, including hospitals, health centers and clinics; coordination is the soul of hospital management. However, in the hospital setting, having such advanced technology in health care facilities; a host of facilities and features need to be integrated and synchronized, thus requires a strict coordination. Advanced technology is an important factor in the hospital facility and functions.

Another attribute of hospital management is the specialties and sub-specialties in which many sub-categories are specializations themselves. There will be different persons handling each area or department of the hospital like a person skilled in intensive care will be assigned to take care only of this department while a person skilled in inventory management will be the sole in-charge of medical supplies; an actual way from which most hospitals function. With this, a management professional need to be trained to handle each of these areas and puts the knowledge and skill into actual practice.

Meanwhile, the role of healthcare professionals as being versatile is important factor in hospital management. During their academic internships and trainings, most of hospital management professionals have exposures to all these functions. Functions and works in the hospital are usually rotated as well as shuffled. They usually carry out functions within the allotted department for a fixed period of time, after which they are shifted to other areas. So over the duration of an entire career, a hospital management professional would have been trained and worked in just about every area of management. Also, hospital management administrators, members and staff work with strict rules of accountability. Efficiency is a must in which all the various functions in the hospital have to be carried out very smoothly. Although technology plays a big part to help these professionals in a few areas; they also need to be resourceful and intuitively on many instances, even without the help of technology. Examples are through care and public relations with the patients as well as suppliers. It is the human element that is need with these kinds of function and relations.

Finally, and the most important attribute of hospital management is a strong backend or ensuring that all aspects of the hospital are kept up-to-date. This is probably the most important requirement of hospital management. If the hospital has to appear to be a healthcare entity in which everything is spic and span; the primary responsibility for ensuring this belongs to those in charge of management. Just as how the true test of the effectiveness of technology is in how less invasive it is for the user; in hospital management too, there should be no external trace of the work that has gone inside.


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