The Insurance
Industry
Name
Company
Job
Interesting facts about yourself..
Insurance industry Overview
Provides important benefits to
consumers
Part of the financial industry
Divided into 2 primary divisions:
Property & Casualty:
2 classifications as well
Commercial
Personal & Business
Life & Health
Words To Know
Risk: Conditions in which there is a possibility of loss.
Peril: Event insured against; cause of a possible loss.
Hazard: Specific situation or condition that increases the
probability of a loss.
Loss: Basis of a claim
Policy: Insurance contract
Deductible: Provision in a policy whereby the insured is
required to pay a specific amount of percentage of a loss.
John Is Opening a new Café!
The Local Café
What kind of insurance
does he need?
Types of Insurance the Café Needs
Property Insurance
General Liability
Liquor Liability
Workers Compensation
Business Auto
Group Health Insurance
Group Dental Insurance
What Type Of Insurance
Do
You
Need?
Your Insurance Needs
Homeowners Insurance
Renters Insurance
Flood Insurance
Life Insurance
Health Insurance
Auto Insurance
The Insurance Industry
Property & Casualty-
insurance on homes, cars, and businesses. Technically,
property insurance protects a person or business with an interest
in physical property against its loss or the loss of its incomeproducing abilities. Casualty insurance mainly protects a person
or business against legal liability for losses caused by injury to
other people or damage to the property of others.
Life & Health-
is insurance against the risk of incurring medical expenses
among individuals.
The Insurance Industry
Commercial Insurance –
is a contract between an insurer and a business owner whose
purpose is to minimize the owner's risks against losses,
whether from weather, theft, vandalism, lawsuits, accidents or
any other reason.
Personal Insuranceinsurance of human life values against the risks of death,
injury, illness or against expenses incidental to the latter
Principle of Indemnity
Insurance is designed to
restore the policyholder to
the same financial condition
enjoyed prior to a loss.
Elements of a Loss
There are three elements to a loss:
1. An item exposed to a loss
2. A cause of the loss
3. The financial impact as a result of the loss
Four Types of Hazards
Physical Hazards- improper brakes on car
Moral Hazards- speeding in car
Morale Hazards- leaving keys in car
Legal Hazards- personal injury lawyers
All of the above increase the chance of a loss
and may also increase damages incurred
Major Types of Loss Exposure
Property:
These are easier to see, touch and evaluate.
Example: Damage to your home
Liability:
Involves the loss of assets because we have become financially
responsible to another person, firm or organization.
Example: Lawsuit from destroying someone else’s property
Human:
Involves the loss of life, health, or earning capacity
Example: Getting hurt on the job
Types of Risk Management
There are 5 types of risk management:
1.
2.
3.
4.
5.
Avoid
Reduce
Retain
Share
Transfer
Law of Large Numbers
The larger the number of risks or exposures, the
more closely will the actual results obtained
approach the probable results expected from an
infinite number of exposures.
Common Thought of Insurance Careers
Insurance Agent: Primarily concerned with selling policies to new
clients
Customer Service Representative (CSR): Primary person who
has contact with the agency’s customers.
Underwriter: Decides which risks to insure/deny
Claims Adjuster: Investigates the facts surrounding a reported
claim
Actuary: Determines the rates that should be charged for various
types of insurance and for different customers.
Want a Career In Insurance?
Online Insurance Services Business Degree
from Northeast Community College
Online Insurance Certificate
from Northeast Community College
-Transferable to all colleges and universities
-All online
-Complete at your own pace
More Knowledge about insurance =
more attractive to employers
Questions?
Check out www.investne.org
Contact InVEST Nebraska Program Coordinator
olivia.brichacek@biginebraska.org
800-377-3985