Old Mutual. Image credit thezimbabwedaily.com

Old Mutual. Image credit thezimbabwedaily.com

ZIMSEC O Level Commerce Notes: Insurance: Functions of insurance underwriters

Functions of underwriters.

  • Are insurers (insurance companies) who provide insurance cover.
  • Assess risks (examine details in the proposal form)
  • Cover or accept risks by:
  • Singing their names against risks they have agreed to cover.
  • Charge and collect premiums
  • Specialise in different types of risks e.g. fire.
  • Sell insurance policies to merchants through brokers.
  • Pay commission to brokers.
  • Earn profit as remuneration.
  • Pay appropriate compensation when loss or risk occurs.
  • Found at the Lloyd of London.
  • Form syndicates to cover big risks.
  • Can re-insure big risks.
  • Have large capital to pay big compensations.
  • Ensure unlimited investment.
  • Suffer unlimited liabilities for losses insured.

To access more topics go to the Commerce Notes page.

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