BAF) 1

Rules

A. You can use text book, journals or any other materials to write down some theoretical concepts

included.

B. You should take first hand information through interview or focus group discussion from insurers you

have selected.

C. You should take letter from the department to ask permission and cooperation of the insurance

companies and should be attached as annex.

D. You should take confirmation letter from the insurance companies as you have approached them and

take information for your project and should be attached as annex.

E. You should work your original work as per the questionnaires given and any attempt or actual
cheating

from other group will definitely lead to make invalid both group papers.

F. The members in each group should not be with difference of 2 or more from the other group.
G. Any student who does not actively attend the class should not be the member of the group and if this

prohibition is broken, the paper will not be proceeding for presentation.

H. Equal participation in both academic and financial contribution is mandatory and no one is the boss
or

the follower in the group, rather all are active players of the match.

I. Your paper should be clear and written in computer with at least the following format but not limited
to

a. Cover page

b. Acknowledgment

c. Table of content

d. List of figures or tables (if you have)

e. Introduction

f. Discussion

g. Conclusion and recommendation

J. Submission date: at the final exam of Risk & Insurance Management final exam date and the

presentation would be also on the next day of the submission of the paper.

Questionnaires for Insurance Management Mini Project

1. What is insurance, insurance management and steps in insurance management?

2. Briefly develop the historical overview of insurance company as a head office and as a branch

specifically for your selected insurance company.

3. What are the legal foundation to found the insurance company in Ethiopia and what are the

necessary preconditions to operate insurance business in Ethiopia (discuss all related proclamations,

and regulation related to insurance business in Ethiopia; use recent legal documents)

4. What are different stakeholders of insurance business and their roles with reference to Ethiopian

insurance business environment?

them why only these products are provided by your selected insurance companies?

6. What are the legal principles your selected insurers expected to provide insurance coverage to the

insured?

7. What are the criteria’s to offer insurance policy and not to offer for whom potential insured’s?

(criteria’s for inclusion and exclusion)

8. When will be the insurance coverage denied while the insured is suffered from actual loss of

property which is register for insurance?

9. Do all properties are insured in your selected insurance companies, if not why all properties are not

insured by the insurer? List some prop4Insurance management refers to the processes and activities
involved in the administration and oversight of insurance policies. Insurance management can
encompass a wide range of tasks, including underwriting, policy issuance, claims processing, risk
assessment and analysis, regulatory compliance, and customer service.

Insurance management involves the use of various tools and technologies to manage the entire
insurance process, from policy issuance to claims settlement. This can include software programs to
assist with underwriting and risk assessment, as well as customer relationship management (CRM)
systems to help insurers manage customer interactions and claims.
Insurance management is an essential function for insurance companies and other organizations that
offer insurance products. Effective insurance management helps insurers to minimize risk, optimize their
operations, and provide high-quality services to their customers.

a. Objectives of premium rate making: The objectives of premium rate making are to ensure that the
premiums collected are sufficient to cover the potential losses, expenses, and profits of the insurance
company while offering competitive rates to customers.

b. Steps in premium rate making: The steps in premium rate making involve analyzing the risks that the
insurance company is covering, evaluating historical claims data and losses, determining the expenses
associated with underwriting and claims handling, projecting future losses, and developing a pricing
strategy.

c. What are the basis attributes to be considered in premium computation: Basis attributes considered
in premium computation typically include the insured's age, gender, health status, occupation, location,
and the type of coverage being purchased.

d. The formula to compute the premium: The formula used to compute the premium is typically based
on multiplying the insurance rate per unit by the specified number of units, with additional adjustments
made for factors such as discounts or surcharges.

e. Reason to increase or decrease insurance premium: The primary reason to increase or decrease
insurance premium is to ensure that the premium collected is sufficient to cover the potential losses and
expenses of the insurance company while also offering competitive rates to customers.

f. Roles of law of large number in premium computation: The law of large numbers is used in premium
computation because it allows insurers to predict the probability of future losses with greater accuracy
based on a large sample size.

This helps insurers to make more informed decisions about pricing and coverage.There are several
stakeholders in the insurance business in Ethiopia, and their roles are as follows:
1. Insurers: Insurers are the backbone of the insurance business in Ethiopia. They are responsible for
providing insurance policies to individuals and companies to protect them against unexpected losses or
damages. They collect premiums from the insured and pay out claims when the insured suffer losses.

2. Reinsurers: Reinsurers provide insurance protection to insurers. They provide financial support to
insurers in case of large claims or catastrophic events that can potentially bankrupt the insurers.

3. Regulators: The National Bank of Ethiopia is the regulatory body for the insurance industry in Ethiopia.
The regulator sets the standards and guidelines for insurers to operate in the country. It monitors
compliance with laws, regulations, and ethical standards, to ensure that insurers operate in a fair and
transparent way.

4. Customers: Customers are individuals or organizations that purchase insurance policies to protect
their assets and manage risk. They pay premiums to insurers in exchange for insurance coverage.

5. Agents and Brokers: Agents and brokers are intermediaries between insurers and customers. They
help customers to buy insurance policies and advise them on the best policies to suit their needs. They
act on behalf of insurers to sell policies and collect premiums.

6. Employees: Employees of insurance companies are responsible for underwriting, claims processing,
sales, marketing, and customer service. They ensure that the insurance companies operate efficiently
and deliver value to customers.

7. Investors: Investors in the insurance business in Ethiopia provide capital to insurers to enable them to
write insurance policies and to grow their businesses. They expect a return on their investment in the
form of dividends or capital gains

Insurance is a contract in which an individual or entity pays a premium to an insurance company in

Insurance management refers to a set of processes and procedures put in place by insurance companies
to effectively manage their policies, premiums, and claims. It involves analyzing and mitigating risks,
setting premiums, collecting and managing premium payments, providing customer service, and
processing claims.

Effective insurance management involves a range of activities such as underwriting, risk assessment,
actuarial analysis, claims processing, and policy administration. This ensures that insurance companies
can operate effectively and efficiently while minimizing risks and maintaining profitability.

Insurance management may also involve implementing regulatory and legal compliance requirements
such as financial reporting, policyholder protection, and data privacy laws. The goal of effective
insurance management is to provide high-quality insurance products and services to customers while
ensuring the financial stability and sustainability of the insurance company.

I'm sorry, but as an AI language model, I don't have specific information about the policies and
procedures of any specific company. However, in general, managing insurance in a company typically
includes the following steps:

1. Identify the insurance needs of the company based on the type of business, the size of the company,
the industry, and the risks associated with the business activities.

2. Research different insurance policies and providers to find the most suitable coverage for the
company's needs and budget.

3. Purchase insurance policies and negotiate the terms and conditions with insurance providers.

4. Maintain accurate records of insurance policies, premiums paid, and claims made.

5. Evaluate the insurance coverage periodically to ensure that it is still adequate for the company's
current needs and risks.

6. File insurance claims promptly and follow up with insurance providers until the claims are settled.

7. Communicate any changes in insurance coverage or claims status with relevant stakeholders, such as
employees, customers, and business partners.

It's important

Awash Insurance Company (AIC) is one of the oldest and largest insurance companies in Ethiopia. It was
established in 1994 as a subsidiary of Awash International Bank, which was established in 1994 by 486
founding shareholders.
In the years following its establishment, AIC grew rapidly and expanded its operations throughout
Ethiopia. It offers a wide range of insurance products, including motor insurance, fire and allied perils
insurance, marine insurance, personal accident insurance, and health insurance.

In 2008, AIC became the first Ethiopian insurance company to be awarded an ISO 9001:2000
certification for quality management. This helped to further cement its position as a leading insurer in
the country.

Over the years, AIC has played an important role in the development of the Ethiopian insurance
industry. It has been a pioneer in introducing new insurance products and services, and has helped to
raise awareness among the public about the importance of insurance.

Today, AIC is one of the largest insurance companies in Ethiopia, with a network of more than 50
branches and over 1,000 employees. It continues to innovate and expand its operations, and is well-
positioned to play a leading role in the future of the Ethiopian insurance industry.