CASE ASSIGNMENT-1

Consumers in the UK seem to be at the mercy of their own insurers.

Hidden within the fine print of the renewal notices is the true cost of
renewing the insurance, often as much as a 100 percent increase. This
is despite the fact that there have been no claims on the insurance and
perhaps the value of the insured asset has fallen since last year.
Unwittingly, consumers have signed up for continuous payment to
authorities. In effect, this means that consumers have agreed to
continue to buy the insurance year over year, regardless of an increase
in price, unless they contact the insurer and cancel it. If only cancelling
insurance was that simple. If consumers fail to read the small print in
their contracts carefully, they are hit by a cancellation fee. With higher
percentages of consumers checking insurance quotes on price
comparison websites, insurers still take the chance of inertia when the
consumers receive their renewal notices. Insurers seem to rely on the
fact that a certain percentage of consumers do not bother to read the
documents, and if they do, they do not readily notice that the price is
far higher than the previous year.
The Financial Conduct Authority, which has responsibility for dealing
with disputes arising out of financial services, receives around 500
complaints a year regarding insurance renewal. However, this is just the
tip of the iceberg. In response to the bad publicity the practice has
received in the media, the Association of British Insurers has proposed
that renewal letters should state the amount that the consumer paid
last year alongside the renewal price for the coming year. The
suggestion is yet to be adopted.
QUESTION:01: Discuss what aspects of the competitive environment of
the insurance industry might encourage this type of practice.
ANSWER: The safety net provider should settle on specific principles,
terms, and conditions for candidates, project assessed misfortunes and
costs through the expected time of inclusion, and ascertain sensibly
precise rates to cover these misfortunes and costs. Since numerous
components influence misfortunes and costs, the endorsing task is
perplexing and unsure. Terrible endorsing has brought about the
disappointment of numerous guarantors.
In certain kinds of protection major guaranteeing choices are made in
the field, and in different sorts they are made at the work space. In the
field of extra security the specialist's judgment isn't acknowledged as
last until the work space financier can settle on a choice, for the
disaster protection contract is normally noncancelable, once composed.
In the field of property and responsibility protection, then again, the
agreement is cancelable if the work space financier later discover the
danger to be unsatisfactory. It isn't phenomenal for a property and
responsibility back up plan to acknowledge huge dangers just to drop
them sometime in the not too distant future after the full realities are
investigated. The protection guarantor should step a slight line
between unjustifiable severity and excessive laxity in the
acknowledgment of hazard. The financier's position isn't not normal for
that of the credit director in a business organization, in which
preposterously severe credit guidelines debilitate deals yet excessively
frail credit principles welcome losses
QUESTION:02: Debate whether or not technology and access to price
comparison websites can banish this type of fraudulent practice in the
insurance industry
ANSWER: The speeding up notoriety of value examination sites (PCWs)
in the UK protection market – likewise called aggregators – is placing
more control and decision in the possession of purchasers. Be that as it
may, this is likewise opening up another domain of opportunities for
fraudsters.
Since PCWs can acquire cites from numerous safety net providers in
only one hunt, fraudsters and bots can submit many applications with
slight varieties to recognize and exchange "unrealistic" protection plans
as apparition representatives, buy different arrangements prior to
coordinating mishaps for claims extortion, or utilize the information
they separate for cutthroat insight.
As the PCW has the principal contact with the client, safety net
providers are restricted to tolerating a statement essentially dependent
on the data in the application and not many can apply
misrepresentation assurances before a statement is submitted.
Thus, the protection business has been calling out for correlation sites
to move forward and carry out enemy of extortion estimates that stop
fraudsters.
This contextual investigation centers around how GoCompare.com
executed iovation's gadget acknowledgment innovation at point-of-
statement to recognize high-hazard traffic, banner outsider extortion,
block abuse of its site, and increment accomplices' trust in the
clients passed to them