Discussion

Look at the following list of people and items insured on the Lloyd's insurance market. Discuss the potential risks which are involved in each case, using a modal of possibility {may/might/could).

Example: The 286 Sainsbury supermarkets in the UK

• There may be a fire in a store.

• A shopper or an employee might have an accident outside or inside a store.

• The products sold by the store could be faulty.

1. Michael Jackson, Elton John and Rod Stewart

2. The Van Gogh art exhibition in Amsterdam

3. The world's largest cigar, twelve and a half feet long and weighing 110 kgs

1. A £1 million prize offered by Cutty Sark Whisky to anyone who can capture the Loch Ness monster

4. The beards of the 40 members of the 'Whiskers Club' in Derbyshire in England

5. The outdoor opera festival in the Italian city of Verona

131

UNIT FOURTEEN

LANGUAGE FOCUS

EXPRESSING APPROXIMATION

The following words can all be used to express approximation:

about	approximately	around
nearly	roughly	some

Look at these examples from the text:

There are around 850 insurance companies authorised in the UK but approximately one half of them handle more than 90% of company market business. (para. 3)

The Members are grouped in some 350 syndicates. Business is introduced by Lloyd's broking firms — there are some 240 of them - who look for the best quotation on behalf of their clients. (para. 6)

Can you find any more examples?

Practice

Prudential Corporation plc is one of the world's largest life insurance groups.

Working with a partner, comment on the following figures, using an expression of approximation.

Example: Prudential Corporation employs about 30,000 people worldwide.

Prudential Corporation plc: Information at 31 December 2005
No of employees (worldwide):	29,886
No. of employees (UK):	25,886
No. of customers (worldwide):	8.3 million
Funds under management:	£50.9 billion
Dividend per share:	11.0 pence
Premium income from long term business:	£6.01 billion
Profit made before tax:	£267 million

132

INSURANCE ■

SKILLS FOCUS

Listening

1 You will hear Don Raley, an expert in the field of insurance, talking about the way that Lloyd's operates. Listen and take notes under the following headings:

Don Raley

• 

  Syndicates ■ Underwriters

• Brokers

• Names

2 Listen to the second extract.

1. According to Don Raley, what three advantages does Lloyd's have over the insurance companies?

2. How has it managed to achieve these advantages?

3. Now listen again and find the words that the speaker uses to mean the following:

a strong points

b been unable

c the cost of running a business

d eliminating

e to minimise

f in the area of

g experts

3 In the final extract Don Raley talks about changes in the way that Lloyd's operates.

1 Listen and select the key words that he uses to describe the changes in the following areas:

a Liability

b Regulation

c Marketing

2. Why does Don Raley think change is necessary?

3. Listen again. In which of the three areas above are changes already happening? In which are changes planned?

133

SPEAKING

Evaluating risk

Work in small groups. Read the following document which describes the main criteria that are used by UK insurers to define a standard driver who would pay the normal rate for motor insurance cover.

Any exceptions would probably result in the driver paying a higher premium. Would you qualify for the normal rate? If not, how many conditions would you fail on?

The Driver

The person seeking insurance must:

• be the main user of the car.

• be between the ages of 25 and 74.

• have been resident in the UK for at least 3 years.

• have had a full UK driving licence for the past 12 months.

• have had no motoring convictions during the past 3 years.

• have had no suspension of licence during the past 5 years.

• have had no motor insurance containing special terms or increased premiums.

■ not have a physical defect, infirmity or suffer from a heart condition or diabetes.

■ not be engaged in the following businesses or occupations:

Casino, Night Club, Disc Jockey, Musician, Professional sport, Entertainment, Show Business, Student.

Another factor used in determining the premium that will be charged for motor insurance is what is called the 'group rating'. Under this system each model of car is included in one of twenty groups depending on a variety of factors such as:

• Cost of spare parts

• Repair times

• Price of the car

• Performance

• Car security and anti-theft features

The classification of a particular model will therefore indicate the risks that the insurer is exposed to. In the UK, for example, a Mini would be included in the lowest group and a Ferrari in the highest.

2 On the opposite page you will find three forms which have been completed by three people who wish to insure their cars. Read these forms carefully and then, using the information you have just studied, discuss what you think are the characteristics of each of these risks, putting yourselves in the position of an underwriter.