Role Of Management Accountant in Insurance Business.

Management Accountant-an accountant of the future for Governance-Both Corporate world and the Government.

Insurance Industry in india until recently had been completely owned by government of India.
The nature of the Industry is that it acts on Uberrima fidae (utmost good faith)and tries to make good the loss of the one who insures risk.
Primarily Insurance was of two types one that covers Life risk and the other all risks other than life.
With liberalisation and transfering of insurance into private hands insurance business has delivered more innovative products like investment based risk cover.Primarily this is to generate funds for the industry but has mutual benefits.
An insurance product has the following cost components:
1.Cost of selling the product designed(one time cost and recurring resulting in discounted premium).
2.Cost of administration of the funds.
3.Cost of settling claims(survey and assessment).
4.Management and general administration.
The quantum of premium determination depends on the risk involved that is under cover ,probability of occurance ,of such risk, overboard and the costs above mentioned.
A management accountant is a business analyst primarily and an accountant at the bottomline so he is in the right position to help the insurance company to collect analyse and generate reports to the management on the Cost-benefit of an insurance product and a good Cost-management system will go a long way in guiding the sustenance of insurance business.