OPERATIONS IN

INSURANCE
INDUSTRY

Insurance operations-Corporate office

(higher level)
Corporate Office

CSR
Technical
Corporate
Strategy

HR

Finance

IT Reinsurance

& Investments

Marketing

Insurance operations ( Branch office)

lower levels
Branch Manager

Manager-Underwriting Manager-Claims Manager-Sales Manager-Accounts

Assistants

Assistants

Marketing Officers

Assistants

Agents/Financial advisors

Underwriting
The entire gamut of activities which go into acceptance of

risks by insurers.
Entails risk inspection, scrutiny of proposals, decision on
acceptance/rejection of proposals, fixing of premium
rates, setting special policy conditions etc.
A line function at the operational level.
Insurers maintain a panel of experts due to specialized for
of insurances like project insurance, aviation insurance,
livestock insurance etc.

Underwriting dept.-functions
Separate depts. Exist for term/ endowment policies for Life.
Headed by Underwriting Manager/Officer in an operating office.
Assistants in each section, Fire/ Marine/ Motor/ Miscellaneous.
Need to be discreet in risk acceptance and also have a good

grasp of rates chargeable for each type of risk.

Responsible for quality of business procured.
Each Company would fix an upper limit for risk acceptance for
individual offices.
Maintain a healthy & viable pool
To keep premiums at a competitive level.
Risk classification wherever possible (Preferred risk/ Standard
risk/Sub standard risk)
Decide whether coverage need to be altered or deductible
imposed.

Underwriting documents
Proposal-form
Medical certificate
Premium-receipt
Policy
Endorsement
Cover-note
Renewal-receipt
Inspection report

Claims Management
Entails all activities which handle losses preferred by

policy holders on the insurers.

Involves arranging expert loss assessors to ascertain the
extent of damages, obtaining corroborative documents
from claimants, scrutiny of survey report, and then arriving
at a decision on admissibility of liability.
It also involves coordinating loss-minimization operations,
disposal of salvage etc.

Claims Management
Headed by Claims Manager/Officer.
Assisted by assistants in the different areas.
Responsible to avoid needless leakages on fraud/inflated

claims and strict while controlling claims outgo.

Accountable for maintaining loss ratios at manageable
levels.
Accountable for having tight control over loss assessors
and also for recoveries wherever possible
Upper financial limit fixed for claims disbursement.

Claims-documents
Life insuranceDeath certificate/ Post-mortem certificate
Claim form
Survey/Assessment report
FIR
Investigation report
Repair-estimate

Accounts
Headed by Accounts Manager/Officer.
Responsible for correct maintenance of records

pertaining to premium receipt, claim payments, employee

payments, statutory payments & returns.
Responsible for conduct of statutory audit & submission
of final statements of accounts.
Upper limit of financial authority fixed for disbursements.

Sales
Headed by Sales Manager
A team of Development or Marketing officers report to

Sales Manager.
Each Marketing officer is assigned a territory and the
business target for a financial year is given.
Monetary incentives are given for business growth as well
as for profitability of business procured.
Penalties are also fixed for non-achievement of business
targets.
Each Marketing officer is allocated a team of Insurance
agents/financial advisors who work on commission basis
but are not employees of the Company.

Sales/Marketing organization
Operating
Office
(Branch/Division)

Broker

Marketing
Executive

Agent /
Insurance
Advisor

Agent/
Insurance
Advisor

Corporate
Agents

Bancassurance