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General Insurance Agency, General Insurance Agent

By: EconomyWatch Date: 26 May 2010

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An Introduction to General Insurance Agency

General insurance agency refers to companies providing an extensive range of non-life insurance policies that provide benefits to cover loss from a particular financial event. They offer coverage for commercial lines as well as on personal lines. On personal lines, insurance are available for private cars, house, pets etc. Commercial line products are designed to cover public liability, product liability and commercial fleet.

Products of General Insurance Agency:

General insurance agency provides two types of covers :

Personal Lines: Under this head broad range of programs are usually available across the country. Protection is provided for bodily injury of the insured or property damage or pets. Protection covers household possessions against windstorm, lightening, fire or forced-entry theft. There are special limits of liability for jewelery, guns, computer and photographic equipment. Under general insurance agency's basic renters program repair or replacement cost coverage is provided for all products. Medical expenses are also provided in case of guests meeting an accident. Additional expenses for emergency living are also covered. The range for personal motorcycle programs extends from clean drivers to drivers with minor and major accidents and violations. Additional coverages are provided for accessories and non-standard equipments. General insurance agencies do offer discounts if the rider has undergone motorcycle safety foundation training. Attractive earthquake insurance options are designed to provide broader coverages, higher limits and lower deductibles.

Commercial lines: Products available under this head are growing rapidly. General insurance agency offers versatile and flexible packages to meet the needs of large multi-discipline firm as well as small beauty parlor. Cost of protection depends upon the risk as measured by the insurance company's underwriters. Special policies also cover personal injury, pollution incidents, temporary staff etc.

Working of a General Insurance Agency:

A General insurance agency earns its revenue from the premium that an insured pays after periodic intervals. This premium is calculated by experts from actuarial societies or underwriters. Major factors affecting the rate of premium are risk faced by the particular entity, extent of safety measures taken to prevent damage, its location and various other factors as applicable. The cost incurred by the general insurance agency include the payment of claims and operating costs.

Performance of General Insurance Agency across the world:

Last year the general insurance agency business grew by 1.5% globally. Downward pressure on premium rates in the industrial sector particularly in the non-catastrophe lines of business was the spectacular feature of the market and even higher demand failed to offset it. The forecast for 2007 suggests sound performance but premium growth will be sluggish.

Getting cover under general insurance agency has always been a rational decision and more so with the expansion of the definition of risk.

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