Actuarial Notes

General Insurance Company Operations

By Anthony Cappelletti · Society of Actuaries · 2025

Study guide: Exam GI-201

A Society of Actuaries study note (May 2025) on the operations of a general insurance company. It lists the core operations as production, pricing, underwriting and claims, supported by accounting and finance, information systems, investments, legal services, reinsurance and risk management.

On the syllabus

  • Exam GI-201 — outcomes 1a-g (the whole study note, May 2025)

1 Introduction

  • 1.1 Departmental Structure of an Insurance Company

2 Overview of GI Companies

  • 2.1 Form of Ownership
  • 2.2 Location of incorporation
  • 2.3 Licensing status
  • 2.4 System of Production
  • 2.5 Other Classifications

3 Production

  • 3.1 Consumers for Insurance
  • 3.2 Distribution Methods for Insurance
  • 3.3 Distinctive Factors for the GI Marketplace
  • 3.4 Marketing Activities

4 Pricing Function

5 Underwriting Function

  • 5.1 Underwriting Measures of Potential Loss Severity
  • 5.2 Underwriting Metrics

6 Claim Function

  • 6.1 Claims Department
  • 6.2 Investigation
  • 6.3 Assessment
  • 6.4 Communication with the Insured
  • 6.5 Loss Adjustment Expenses
  • 6.6 Salvage and Subrogation
  • 6.7 Actuarial Analyses of Claims Data

7 Reinsurance

  • 7.1 Types of Reinsurance
  • 7.2 Reinsurance Decisions
  • 7.3 Insurance Reinsured vs Primary and Excess

8 Risk Management

9 Premium Audit

10 Conclusion

Sources