Page 239 - DCOM309_INSURANCE_LAWS_AND_PRACTICES

Insurance Laws and Practices Mahesh Kumar Sarva, Lovely Professional University

Notes Unit 14: Trends in Insurance Sector

CONTENTS
Objectives
Introduction

14.1 Actuarial Services
14.2 Recent Trends in Insurance Sector
14.2.1 Current Trends of the General Insurance Market

14.3 Summary
14.4 Keywords
14.5 Review Questions
14.6 Further Readings

Objectives

After studying this unit, you will be able to:

Explain the concept of actuarial services
Discuss some recent trends in insurance sector

Introduction

In the previous unit, you have studied about the privatization of insurance sector and current
scenario of insurance industry in India. The unit also dealt with various opportunities and
challenges in insurance industry today. It also discussed the way ahead for insurance industry.

In this unit, you will study about the various trends in the insurance sector. The number one
priority for insurance carriers today is profitable growth and one of the most effective ways to
enable this growth is through the use of innovative technologies. Yet, while they are critical,
implementing new technologies can drain budgets and resources. Carriers must judiciously
determine which technologies are worth the investment today and which ones deserve a strategic
“wait and watch” approach.

14.1 Actuarial Services

Let’s start the unit by first discussing actuarial services. Actuarial service refers to the method by
which corporations determine, assess and plan for the financial impact of risk. Actuaries use
mathematical and statistical models to evaluate risk in the insurance and finance industries.

Notes In addition to mathematical and statistical methods, actuaries call upon other fields
including probability, finance, economics and computer programming to create actuarial
models.

Actuarial science is used to evaluate and predict future pay-outs for insurance and other financial
industries such as the pension industry.

234 LOVELY PROFESSIONAL UNIVERSITY