PDI - Property Insurance

Learning Outcomes

On completion of the module, students are expected to be able to:

• identify and assess the principal factors involved in the assessment of property risks according to different business activities;
• define and analyze the scope and the process in constructing principal property insurance contracts according to the nature of business and the need of the client; and
• interpret and perform tasks on insurance matters independently including quotation, portfolio performance of underwriting, suggestions of negotiation strategies, and review performance of claims of the principal property insurance contracts including package policy according to requirements of the insured and the insurer under different factors of consideration.

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Learning Contents
 

1. Review of basic principles of insurance

• ​Indemnity, Subrogation, Contribution and Proximate cause

2. Review of insurance in practice

• Physical and moral hazard and Under-insurance ie. Average

3. Policy contents of various types of property insurance

• Fire and additional perils
• Business interruption - Meaning of Gross Profit, variable and standing Charges
• Theft including Burglary and Robbery
• Money
• Glass Fidelity Guarantee
• Engineering (machinery) including electronic equipment, computer insurance
• Construction and erection including Contractors’ All Risk Insurance
• Combined and package policies including Domestic insurance
• Commercial/ Property All Risk Insurance

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4. Risk assessment

• Sources of information for risk assessment including fire fighting and protection
• Inception and propagation risks
• Estimated maximum loss, maximum probable/ possible loss and normal loss expectancy
• Risk inspection (survey)
• Physical and moral hazards on fire, theft and other risks
• Risk improvement

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5. Underwriting

• Importance and principles of sound underwriting
• Concept of accumulation and spreading of risks
• Particular features and factors for underwriting considerations and rating of various types of property insurance
• Underwriting techniques in handling standard, sub-standard and above-standard risks
• Effects of inflation and use of an inflation clause
• Declaration and First loss policies
• Use of Reinsurance

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6. Claims practice

• Procedures of processing property claims
• Policy conditions and wordings relating to claims
• Claims form and other claims documents
• Claims statistics and reserves
• Fraudulent claims such as Arson
• Claims specialists such as Loss Adjusters, Investigators, Valuers, etc.