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Commercial Insurance Underwriting University of Illinois Urbana – Champaign Finance 230

Discover the world of commercial insurance and underwriting at the University of Illinois Urbana-Champaign with Mike Myers and Sue Myers. Learn about different types of insurance, why insurance is crucial, and the risks and coverage involved.

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Commercial Insurance Underwriting University of Illinois Urbana – Champaign Finance 230

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  1. Commercial Insurance Underwriting University of Illinois Urbana – Champaign Finance 230

  2. Who are We? Mike Myers, CPCU, ARM Regional Underwriting Manager Sue Myers, CPCU, ARM, AIC Commercial Lines Underwriter

  3. Insurance Companies • Founded in 1911 • Issued the country’s first Worker’s Compensation policy • Member of the Liberty Mutual Group • 95 on the Fortune 500 List • $23.5 Billion Revenue • Over 40,000 employees • 6th largest property/casualty company in the United States

  4. Insurance Group • Founded in 1917 • $1.2 billion in revenues • 20th largest commercial insurance writer and 57th largest Property / Casualty company in the United States • 2,200 employees

  5. Overview • Types of Insurance • Commercial Insurance • Different Markets in Commercial Insurance • Underwriting

  6. Different Types of Insurance • Personal Insurance • Health Insurance • Life Insurance • Commercial Insurance • International Insurance • Reinsurance • Specialty Insurance

  7. Why Insurance Is Awesome • Supports Injured People Who Cannot Work • Pays Bills/Expenses of a Business Closed By a Fire • Protects Families from Unexpected Loss of Income • Protects a Person’s Assets • Help’s People Recover From Disasters

  8. Commercial Insurance Insurance for Businesses

  9. What Risks Do Businesses Have? Workers Autos Property Liability Courtesy of www.bullesdoxygene.com

  10. Workers Compensation • Provides no-fault benefits to workers injured on the job • Types of benefits payable • Medical • Disability • Rehabilitation • Death

  11. Hospital – Veterinarians – Grocery Stores – Television Network Sports – Insurance Companies– Workers Compensation What are some of the sources of Workers Compensation claims?

  12. Workers Compensation Courtesy of www.craneaccidents.com

  13. Auto • Protects the owner against losses arising out of the use of an automobile in business. • Types of coverage include: • Business Auto • Garage • Trucking

  14. Auto

  15. Auto

  16. Property Protects against the perils like: • Fire • Theft • Vandalism • Wind Covers: • Buildings • Contents / Stock • Business Income

  17. Property California Wildfires 10/23/07 Courtesy of www.news.yahoo.com/photos/

  18. Property California Wildfires 10/24/07 Courtesy of www.news.yahoo.com/photos/

  19. Liability Protects the owner of a business for suits or claims for negligence of: • Premises • Products Produced • Services Provided

  20. Liability New Massive China Toy Recall Msnbc Headline 8/14/2007 Courtesy of Chip Somodeville / Getty Images

  21. Commercial Insurance Insuring Businesses: • Small Market • Middle Market • National Market Complexity of Risk and Coverage Handling Expenses Size

  22. Functions of an Insurance Product: • Claims – Handles Claims and Pays the Losses • Loss Control – Identifies and Controls Risk • Actuarial – Predicts and Estimates Risk • Underwriting – Accepts and Prices Risk

  23. Underwriting - Simply Stated • Analyzes a customer’s business risk • Decides whether to insure the risk • Decides coverages to offer • Decide appropriate structure • Forecasts costs / Price transferred risk

  24. Underwriting Skill Set • English & Speech • Finance & Accounting • Statistics • Law • Common Sense

  25. It’s All About Risk • Can have millions of dollars in limits on every account, even the smallest • Take on additional exposure with each added coverage • Even the best accounts could have a million dollar claim (or Larger!)

  26. Any Questions?

  27. Thank you University of IllinoisUrbana – Champaign Finance 230

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