Fundamentals of Insurance

Lloyd’s of London aptly refers to insurance as “the protection of the few, by the many”, with its purpose being to restore the insured to the position that existed immediately prior to the incident that led to a loss, damage or liability. Insurance uses the pooling concept to provide cover against financial losses by collecting premiums, investing some of the funds and using the pool of money to pay out claims, simultaneously covering operating expenses and ensuring sustainability by creating reserves and adding value to the insurance company. Fundamentals of insurance is a concise yet comprehensive introduction to insurance, specifically for South African circumstances.
Fundamentals of insurance highlights the need for commercial and personal insurance by explaining the financial objectives of firms and individuals, the role of financial statements and financial analysis, the valuation of assets and how risk management and insurance are related. It details how insurance business needs to be conducted, the procedures for handling claims, as well as the fundamental aspects of personal and commercial insurance. It provides a comprehensive framework and guidelines, with self-assessment questions at the end of each chapter, and prepares aspiring insurers for the entry level of the insurance industry.
Fundamentals of insurance is aimed at insurance students as well as organisations and institutions in the insurance field.
Johan Marx is the director of the School of Management Sciences at the University of South Africa (Unisa). He holds a DCom (Business Management) and has been in academia since 1987. He was a trade and industry advisor at DTI from 1984–1987, and chair of the Department of Finance, Risk Management and Banking from 2007–2012. His research interests are currently in risk management and insurance.
Frank van der Meer is a chartered insurance practitioner (FCII) and a fellow of the Insurance Institute of South Africa (FIISA). He has been in the insurance industry since 1966 and was the director of education of the Insurance Institute of South Africa from 1991–2003. He managed several insurance courses at the Unisa Centre for Business Management from 2006–2014. He remains actively involved in insurance education and training, and is passionate about professionalism in the industry.