Insurance Broker

Question 1

You are an insurance broker. One of your clients, a food processing company, has requested an annual review meeting.
At the annual review meeting, your client informs you that they intend to put their insurance programme out to tender with other brokers, unless the cost of the insurance programme is reduced.
The food processing company has the following risk features:

•  A large commercial motor fleet.
•  Processing and distribution of frozen and chilled food products.
•  The data on the information technology (IT) system is backed-up off-site.
•  The motor fleet claim experience is poor and includes a number of high value claims.
•  The claims experience is very good on all other insurance classes with no individual loss over £10,000 during the last two years.
  The current insurance programme has the following features:
•  The premium spend on the motor fleet is very high.
•  The deductible levels, across all insurance classes, are very low.
•  The business interruption insurance spend is very high.
•  The company has been insured by the same insurer for a number of years.
  Explain, with justification, five significant actions you would advise your client to take to reduce the cost of the insurance programme.

Question 2

Money and Banking is concerned with real world problems. Thus to assist in your education, and to make your study more interesting and useful, it is strongly suggested that you follow current events and debates in the media. It is recommended that you:

•  Watch/listen to the TV and radio news each night, paying particular attention to monetary, economic and political issues;
•  Read news, research studies and literature on finance, banking, money and economic interests.
•  Develop a habit of discussing these issues with fellow students, friends, lecturers and family.

Your task:

There are arguments which suggest that the role of a central bank is a major contributory factor towards the management of financial/economic crises.

Submit a 1,200-word review with evidence, to either support or oppose this argument.