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Chapter 2 The insurance market 2/13

I4 Loss assessors

Loss assessors present themselves as experts in dealing with insurance claims. They are appointed, and
paid for, by the customer to prepare and negotiate a claim on their behalf. The fees paid don’t form part
of the claim and cannot be recovered from the insurer. Chapter

Consider this… 2
Make sure you are clear about the differences between the role of loss adjuster and loss assessor.

I5 Actuaries
An actuary may be defined as a qualified person who applies probability and statistical theory to
problems of insurance, investment, financial and risk management, and demography.
Actuaries have for many years been associated with life assurance companies, applying mortality
statistics and time value of money techniques to determine pricing, the adequacy of funds to meet future
liabilities and solvency requirements. They are also employed by general insurance companies.
Techniques applied by actuaries will include the probability of loss and the prediction of claim numbers
and future values.

I6 Risk managers

For many years, there has been a steady move by firms towards developing a formal strategy for
managing the various risks that affect businesses. Where this is a formalised function within an
organisation, particularly a large or diverse company, specialist risk managers are appointed who are
often members of a professional body such as the Association of Insurance and Risk Managers in
Industry and Commerce (AIRMIC), the Asia-Pacific Risk and Insurance Association (APRIA) or the Institute
of Insurance and Risk Management (IIRM).
The functions of risk managers may be summarised as:
• the systematic identification, analysis and economic elimination or control of risks that threaten the Reference copy for CII Face to Face Training
business;
• providing guidance on best practice in these areas to management; and
• the transfer of appropriately identified risks by contract or insurance.
Question 2.2

In what ways could a risk manager reduce the risk of fire in a company which prints newspapers? Give two
examples.

I7 Compliance officers

In regulating the insurance and financial services sector, many countries have prescribed a number of
key roles that must be performed by a director or senior manager (including insurers and those involved
in insurance mediation). One such role is carrying out the compliance oversight function. In the UK, the
person performing this job is known as a compliance officer and their exact scope of the duties of a
compliance officer will vary from one company to another. However, their main role is to ensure that their
firm abides by the rules and regulations set down by the regulator.
The role is vital to insurers and intermediaries because there are serious consequences of failing to
The role is vital to
comply with the regulator’s rules. The range of functions undertaken by a compliance officer will usually insurers and
intermediaries
include:
• the communication of company policy to members of staff, including the organisation of any
associated training;
• completing the returns required by the regulatory body relating to, for example, governance, finance
and complaints;
• reviewing business processes to ensure that they are appropriate and compliant;
• maintaining the company’s compliance manual;
• checking that all stages of business processes are being performed in accordance with company
policy; and
• performing the role of Money Laundering Reporting Officer.