Definition of an Insurance Company: Insurance companies come in many forms that can provide various types of policies, such as property and accident insurance, life insurance, and health or medical insurance, to individuals and businesses, depending on their needs. Various activities are carried out by an insurance company, including the subscription of a policy before its issuance.
Full Definition of an Insurance Company
These companies sell insurance policies and pay the claims insureds make about their policies.
Most insurance companies have a marketing department that is responsible for advertising and public relations, such as providing information to customers about new products and changes in existing products. Marketing departments often create brochures that are used to provide information about an insurance company’s products. You can also have representatives of companies that make regular visits to the strength of the agency of an insurance company to promote new products and pass information about the company.
Sales and customer service
Most insurance companies have a sales and customer service department and what is also known as the department of the agency. Many of those that do not sell directly to the public have licensed insurance agents that sell their products. The department of the agency is responsible for hiring and training agents who are the sales force of an insurance company. The agency department of an insurance company also provides customer service to its agents for computer software or other technical issues.
Actuarial and accounting
Insurance companies have departments that offer various actuarial and accounting functions. An actuarial department within an insurance company uses the statistical data to determine if the rates used for certain types of policies are sound. The accounting department offers several auditing and bookkeeping functions. Accounts receivable is one of the functions of an accounting department that accounts for all payments received by the insured.
Insurance and issuance of the policy
An insurance company has an entire department dedicated to the subscription of individual policies that are reviewed before they are issued. The subscribers of an insurance company review the policies to determine if an insurance application contains all the necessary information and if the insured meets all the criteria for the issuance of the policy. When an insurance policy is issued, insurance companies mail all the documents of the policy to the insured.
One of the most important departments of an insurance company is the claims department. This department determines if the submitted claim meets the conditions of the policy and must be paid. It also examines all claims and investigates anyone who seems suspicious. Insurance companies also employ claims adjusters to determine the cost of damage to a car or house.