1. Death difference: Death difference refers to the profit and loss caused by the difference between the actual number of deaths and the expected number of deaths. For example, if two people died in 100 when the insurance company set the price, but only 1 person actually died, then the cost reduction caused by the rare death of 1 person is earned by the insurance company.
2. Expense variance: Expense variance refers to the profit and loss caused by the difference between actual operating expenses and expected operating expenses. For example, suppose an insurance company spends an estimated 6.5438+0 million when operating a product, but actually only uses 800,000, then the company earns 200,000.
3. Interest spread: Interest spread refers to the profit and loss caused by the difference between the actual investment yield and the predetermined interest rate. For example, suppose an insurance company sets the price of a product at a predetermined interest rate of 3%, but the actual rate of return reaches 5%, then it is profitable.
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exonerate
In the process of establishing a "safety net" for the insured, the insurance company inadvertently found that its insured may not have the due ability to resist risks (in view of the fact that the insured believes that the danger belongs to the insurance company). In order to reduce this expenditure, the insurance company stipulates through insurance clauses that if the insured participates in or carries out some activities, the insurance company can reduce its liability.
For example, liability insurance companies do not provide international tort liability insurance required by customers. Even if the liability insurer loses its rationality and tries to provide this kind of protection, it violates the policy of most countries not allowing this kind of insurance, which is illegal.
Of course, some people think that this goes against the original intention of insurance, although it is a last resort for insurance companies and the government.
Rejection clause
Refusal of insurance is that some insurance companies often refuse to provide insurance coverage in certain geographical areas or under certain circumstances, often because these places or circumstances may increase risks. These evaluation requirements must be true and reliable, otherwise they are based on discrimination.
When the insurer decides the insurance premium or premium rate, the measurable factors considered in the risk assessment include geographical location, credit rating, gender, occupation, marital status and education level. Of course, the use of these basic elements, whether appropriate or not, is often regarded as' unfair' or racist by some customers, which sometimes leads to political debates on how to determine insurance premiums, and even government intervention and restrictions on the use of these elements.
The negative opinion in this regard is that the professional characteristics of insurance practitioners determine the possibility of dealing with specific risks and losses to be properly classified. Any factor that theoretically leads to the increase of loss risk will lead to the increase of rate. The basic principle of this kind of insurance is that insurance companies or insurance groups must follow and operate correctly, even for non-profit organizations.
Therefore, identifying potential policyholders with legal factors is the central content of insurance. Therefore, in the above-mentioned debate on discrimination, the only unfair consideration is that a group is discriminated against because there is no substantive factor that increases the risk. Therefore, it is necessary for the insured to eliminate the factor discrimination against other insured by tolerating the use of some unacceptable factors.