751-Sabar Institute Of Management, Tajpur - Gujarat Technological ...

When you file a claim, the insurance company usually checks the case and may refuse to cover it
if it doesn’t stand much chance. For the latter, you may want to ask your lawyer for advice.
Legal insurances are customized to their specific field of coverage, be it work, traffic, housing,
or other issues of daily life.
Insurance Supervision in Germany
Functions and objectives of insurance supervision:
Insurance is based on trust: customers expect insurers to be able to honour contractually agreed
payments at all times and often over a very long period of time. In its supervision of insurance
undertakings BaFin therefore performs important social and economic functions and contributes
to the long-term stability of the whole financial sector. In this respect, particular importance is
attached to solvency supervision. In particular, insurers must establish adequate technical
provisions, invest their assets safely and profitably and observe the principles of good business
practice.
The legal basis for insurance supervision is the Insurance Supervision Act Pursuant to section 81
of the Act, the two primary objectives of insurance supervision are:
To ensure that the interests of the insured are adequately safeguarded and
To ensure that the liabilities under insurance contracts can be fulfilled at all times.
Porter’s Five Force Analysis Of Insurance Industry
Competitive rivalry:
There is cut thought competitions among rivals in life insurance industry
Insurance Companies deal in identical policies as services levels offered are similar
Federal Financial Supervisory Authority Controls all the insurance companies in Germany
industry at present hence there are less chance of exit
Power of suppliers:
Policy designer tend to have less leverage to Bargain over premium
Insurance is tax exempted so that suppliers bargaining power increases
Solvency of private players is not certain
Threat of Substitutes:
Customers deposits in their amount in to bank & post deposits & purchase gold & silver
Investment in government securities
Money market investment
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