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How Do Insurance Companies Make Money? - How Does It Work Operationally?

How does it work operationally?

How Does Insurance Work Operationally?

Insurance companies can be much more complex than it seems. I won't go into details, but I will try to give a sense of the variety of things to do:

  • Marketing and product development - we have to understand what our clients want and product design including "features" and guarantees (e.g., including dental health plan or not in limitation of the disease before the type of questionnaire that we ask clients to fill???), pricing, regulatory constraints, etc. and IT is, of course, for the system to support this product.
  • Distribution - how we bring our products to the clients? Agents, brokers, direct sales channels are all there, plus the development of smartphone applications and internet sales.
  • Customer service and claims that "the process of paper" including address change customer or telephone number, the call center for clients who have questions, people file to review and pay claims, etc.
  • Finance - not just the usual financial planning and management (for example, to pay the Bills), but also all financial analysis to invest money and generate profits, reserves calculation, and accounting, etc.
  • Risk, compliance, and regulations - this includes the investigation of false claims and anti-money laundering, above all the accounting control and risk management to ensure the company did not take too many risks.
  • The usual support function, IT, HR, etc.
Please note that you may be having some time difference between the premium received by the client, that quite small and some companies might prefer one to the other.

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