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Fire and Consequential Loss Insurance

n Large Loss Advice. This form is used for entering estimated loss
data.

n Large Loss Payment Advice. This form is used for entering Paid
Loss data.

n Various Reports are generated from these forms by G1C on a
quarterly basis like premium bordereaux, loss bordereau, etc. which
give the premium and loss distribution of every risk for all the
portfolios.

Key ingredients of general insurance product pricing are:

a) claims cost;
b) business acquisition cost;
c) management expenses;
d) margin for fluctuation in claims experience and reasonable

profit.

Steps to be taken for more equitable product pricing

a) Claims costs should be controlled by improved application of
loss control and risk management techniques;

b) Concerted efforts should be made to comprehensively review
and reduce the management expenses ratio.

c) The companies should review the rates frequently in light of
changing claims experience in various classes of risks.

d) Insurers should step up their efforts to provide quick and equitable
settlement of claims so as to create a perception among people
that their interests are better served by companies than by
litigation.

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