Term
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Definition
| a group of policies with common characteristics, such as type of coverage or territory. As a group, these policies are analyzed for losses, change in the group size, and trends. A portfolio is also called a portfolio of policies, a profolio of risk, or a book of buisness. |
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Term
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Definition
| the activity involved in developing new insurance products, changing existing insurance products, establishing profitability goals, pricing products, managing profitability, and managing operations assosiated with a protfolio of insurance policies. |
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Term
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Definition
| the process of (1) identifying factors that are crucial for an organization's success or failure in the marketplace, (2) defining signals or events that affect the factors, and (3) determining the implications of the signals or events. |
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Term
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Definition
| a small group of customers or potential customers brought together to provide opinions about a specific product, service, needs, or other issue. Focus groups provide qualitative data regarding customers' opinions through open discussion. |
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Term
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Definition
| is a set of characteristics common to all risks in a portfilio |
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Term
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Definition
| the process of analyzing the characteristics of policies within a portfolio and the trends of those characteristics. Through this analysis, insurers identify common loss exposures that generate losses that were not anticipated at the time rates were established for the exposure units. Possible activity for correction are then identified and one or a combination of activities is selected for implementation. The portfolio is monitored to determine the effectiveness or the re-underwiting activity. |
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Term
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Definition
| a study that compares the likely costs of a product or service with the likely benefits, both to the customer (in meeting a customer need) and to the insurer (in meeting profit and growth objectives). Some organizations refer to a cost/benefit analysis as a C.B.A |
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